Question: .Requirement Compute the cost allocation rate for each activity. 2. Compute the MOH cost that should be assigned to Job 420. 3. Compute the MOH
.Requirement
Compute the cost allocation rate for each activity.
2.
Compute the MOH cost that should be assigned to Job 420.
3.
Compute the MOH cost that should be assigned to Job 510.
. uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overheadcosts: materialshandling, machineset-up, insertion ofparts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are asfollows:
Bradenton Inc. expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,000 parts, require 10 set-ups, and consume 1,500 hours of finishing time.
Job 420 used 200 parts, required 3 set-ups, and consumed 120 finishing hours.
Job 510 used 475 parts, required 4 set-ups, and consumed 410 finishing hours.
RequirementsLOADING...
Requirement 1. Compute the cost allocation rate for each activity.
First, identify theformula, and then compute the rate for each activity.
Activity
/
=
overhead rate
Mat. handling
/
=
/ part
Machine setup
/
=
/ setup
Insertion
/
=
/ part
Finishing
/
=
/ hour
Requirement 2. Compute the manufacturing overhead cost that should be assigned to Job 420.
Activity
MOH Cost
Materials handling
Machine setup
Insertion of parts
Finishing
Total
Requirement 3. Compute the manufacturing overhead cost that should be assigned to Job 510.
Activity
MOH Cost
Materials handling
Machine setup
Insertion of parts
Finishing
Total
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