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E4-25A (similar to) on Help Data Table The con upc htwide for the Several years after reengineering its production process, King Corporation hired a new controller, Rachael Johnson. (Click the icon to view additional information.) For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows: (Click the icon to view the additional data.) Activity Cost Allocation Rate Allocation Base Red Activity Materials handling Machine setup Insertion of parts Finishing .. Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rate ... Number of parts Number of setups Number of parts Finishing direct labor hours $ 3.50 per part $ 475.00 per setup $ 25.00 per part $ 59.00 per hour King Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Activity Cost Cost Allocation Base Allocation Rate Total Budgeted Indirect Cost Print Done Activity Materials handling Machine setups Insertion of parts Enter any number in the edit fields and then click Check Answer. She developed an ABC system very similar to the one used by King's chief rival. Part of the reason Johnson developed the ABC system was because King'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. 3 parts remaining Clear All E4-25A (similar to) 3 Question Help Several years after reengineering its production process, King Corporation hired a new controller, Rachael Johnson. (Click the icon to view additional information.) The number of parts is now a feasible allocation base because King recently installed a plantwide computer system. King produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: (Click the icon to view the additional data.) For the upcoming year, King's budgeted ABC manufacturing overhead allocation rates are as follows: Read the requirements. Data Table i Requirements Standard Deluxe Parts per wheel 6.0 8.0 Setups per 1,000 wheels 10.0 10.0 Finishing direct labor hours per wheel 2.0 3.0 Total direct labor hours per wheel 2.9 3.8 The company's managers expect to produce 1,000 units of each model during the year. 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. 2. Compute the manufacturing overhead cost per wheel of each model using ABC. 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. Print Done ? Print Done Clear All Check

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