Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity.

					Activity cost
		/		=	allocation rate

Mat. handling

/

=

per part

Mach setup

/

=

per setup

Insertion

/

=

per part

Finishing

/

=

per 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

Choose from any list or enter any number in the input fields and then continue to the next question.

Prepare the income statement for

Strike GoldStrike Gold

Company for the most recent year. Use the calculation of cost of goods sold, cost of goods manufactured, and the amounts below. Assume that the company sold

30 comma 00030,000

units of its product at a price of

$ 12$12

each during the year. Northstar

Northstar

uses ABC to account for its chrome wheel manufacturing process. Company 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:

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NorthstarNorthstar

expects to produce

1 comma 0001,000

chrome wheels during the year. The wheels are expected to use

3 comma 0003,000

parts, require

2020

setups, and consume

2 comma 0002,000

hours of finishing time. Job 420 used

100100

parts, required

44

setups, and consumed

150150

finishing hours. Job 510 used

500500

parts, required

66

setups, and consumed

330330

finishing hours.Read the requirements

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.