E$4-28$A Use ABC to allocate manufacturing overhead $($Learning Objective $2)$

Several years after reengineering its production process, Dettling Corporation hired a

new controller, Alana Metzgar. She developed an ABC system very similar to the one

used by Dettling's chief rival. Part of the reason Metzgar developed the ABC system was

because Dettling's profits had been declining, even though the company had shifted its

product mix toward the product that had appeared most profitable under the old system.

Before adopting the new ABC system, the company had used a plantwide overhead rate

based on direct labor hours that was developed years ago.

For the upcoming year, Dettling's budgeted ABC manufacturing overhead allocation

rates are as follows:

The number of parts is now a feasible allocation base because Dettling recently

installed a plantwide computer system. Dettling prodursa twin $...$h$.$ Detting recentily