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E4-25A (similar to) Question Help Several years after reengineering its production process, Bitmore Corporation hired a new controller, Jane Smith. The number of parts is now a feasible allocation base because Biltmently installed a plantwide computer system. Bitmore produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows: EEB (Click the icon to view the additional data.) Click the icon to view addlitional information.) For the upcoming year, Biltmore's budgeted ABC manufacturing overhead allocation rates are as follows (Click the icon to view the additional data.) Read the requirements. Requirement 1. Compute tho total budgotod manufacturing ovorhoad cost for the upcoming yoar. (Entor the rates to two docimal placos.) Biltmore Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Cost Allocation Base Activity Cost Allocation Rate Total Budgeted Indirect Cost Activity Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost 1 More Info She developed an ABC system very similar to the one used by Biltmore's chief rival. Part of the reason Smith developed the ABC system was because Biltmore'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 Data Table Activity Cost Allocation Rate $4.50 per part $ 325.00 per setup $ 31.00 per part Activity Allocation Base Materials handling . Number of parts Insertion of parts Finishing . Number of parts . . Finishing direct labor hours $ 51.00 per hour Print Done Data Table Setups per 1,000 wheels Finishing direct labor hours per wheel lotal direct labor hours per wheel Standard Deluxe 4.0 20.0 1.0 2.7 6.0 20.0 3.0 3.8 The company's managers expect to produce 1,000 units of each model during the year. Requirements 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 systenm Print Done

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