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Several years after reengineering its production$$ process, Kane Corporation hired a new$$ controller, Georgia Taylor.

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For the upcoming$$ year, Kane$\text{'}$s budgeted ABC manufacturing overhead allocation rates are as$$ follows:

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Part $1$

The number of parts is now a feasible allocation base because Kane recently installed a plantwide computer system. Kane produces two wheel$$ models: Standard and Deluxe. Budgeted data for the upcoming year are as$$ follows:

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Part $1$

Requirement $1.$ Compute the total budgeted manufacturing overhead cost for the upcoming year. $($Enter the rates to two decimal$$ places.$)$

Kane Corporation

Total Budgeted Indirect Manufacturing Costs

Budgeted Quantity of

Activity Cost

Total Budgeted

Activity

Cost Allocation Base

Allocation Rate

Indirect Cost

Materials handling

$14,000$

$$3\mathrm{.}50$

$$49,000$

Machine setups

$20$

$475\mathrm{.}00$

$9,500$

Insertion of parts

$14,000$

$25\mathrm{.}00$

$350,000$

Finishing

$5,000$

$59\mathrm{.}00$

$295,000$

Total budgeted indirect cost

$$703,500$

Part $2$

Requirement $2.$ Compute the manufacturing overhead cost per wheel of each model using ABC. $($Round the cost allocation base to three decimals and cost per wheel to the nearest$$ cent.$)$

Kane Corporation

ABC Indirect Manufacturing Cost per Unit

Cost

Quantity of Cost Allocation

Allocated Activity

Activity

Allocation Rate

Base Used By:

Cost Per Wheel

Standard

Deluxe

Standard

Deluxe

Materials handling

Machine setup

Insertion of parts

Finishing

Total ABC allocated indirect cost

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