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12 5 Doints Required information Upriver Parts manufactures two products, V.1 and V-2, at its River Plant Selected data for an average month for the two products follow. Spoed V-2 1,000 Units produced Direet materials coat per unit Machine hours per unit Production runs per month V-1 10,000 5 1 80 Book 40 Returences Production at the plant is automated and any labor cost is included in overhead Data on manufacturing overhead at the plant follow Machine depreciati Setup labor Material handling Total $ 60,000 27.600 16.220 5103,920 Required: a. Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? (Round your answer to 2 decimal places.) b. Upriver is thinking of adopting an ABC system. They have tentatively chosen the following cost drivers: machine hours for machine depreciation, production runs for setup labot, and direct material dollars for material handling Compute the cost driver rates for the proposed system at Upriver (Round "Machine depreciation answer to 2 decimal places.) Ch 12 Production at the plant is automated and any labor cost is included in overhead. Data on manufacturing overhead at the plant follow 5 point Machine depreciation Setup labor Material handling Total $ 60,000 27.600 16.320 3103,920 Sood Book Required: a. Upriver currently applies overhead on the basis of machine hours. What is the predetermined overhead rate for the month? (Round your answer to 2 decimal places.) b. Upriver is thinking of adopting on ABC system. They have tentatively chosen the following cost drivers machine hours for machine depreciation, production runs for setup labor and direct material dollars for material handling, Compute the cost driver rates for the proposed system at Upriver (Round "Machine depreciation answer to 2 decimal places.) Overhead role Machine depreciation Setup labor Material handling per machine hour per machine hour per production in direct material cost

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