over cost, will its choice of allocation sys E4-20A Compute activity rates and apply to jobs (Learning Objective 2) Fuller Company uses ABC to account for its chrome wheel manufacturing process. Com. pany managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows: Total Budgeted Manufacturing Activity Overhead Cost Allocation Base Materials handling . $ 12,000 Number of parts Machine setup 3,400 Number of setups Insertion of parts 48,000 Number of parts Finishing 80,000 Finishing direct labor hours Total . $143,400 Fuller Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 setups, and consume 2,000 hours of finishing time. Job 420 used 200 parts, required 2 setups, and consumed 130 finishing hours. Job 510 used 425 parts, required 4 setups, and consumed 350 finishing hours. Requirements 1. Compute the cost allocation rate for each activity. 2. Compute the manufacturing overhead cost that should be assigned to Job 420. 3. Compute the manufacturing overhead cost that should be assigned to Job 510