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S Farrington, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertio of parts, and finishing. The budgeted activity costs for the year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Read the requirements. Requirement 1. Compute the predetermined overhead allocation rate for each activity. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Round your answers to the nearest cent.) Materials handling Get more help. Estimated overhead costs Data table Estimated qty of the allocation base Total Budgeted Cost Activity Materials handling Machine setup Insertion of parts Finishing F $ Allocation Base 16,000 Number of parts 4,500 Number of setups 40,000 Number of parts 93,000 $ 153,500 Total Farrington expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 1,000 parts, require 5 setups, and consume 2,000 hours of finishing time. Predetermined OH allocation rate Finishing direct labor hours - X Clear all Check answer

of parts, and finishing The budgeted activfy costs for the vear and there allocition bases are as follows (Click the icon fo wew the budoutod costs ind activify bases) Read the coscicoments Requirement 1, Compute the predeterrained owerhad allocibon rate for each actwity Data table Get more help

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