Davis 6/30/20118 tudent: T ate Instructor: Shahbaz Shahbazi Course: Bus 1B Merri

Question

Davis 6/30/20118 tudent: T ate Instructor: Shahbaz Shahbazi Course: Bus 1B Merritt Online SU 2018 Assignment: Ch. 4: Homework 6. Several years after reengineering its production process,The number of parts is now a feasible allocation base Dettling Corporaton hired a new controller, Alana Metzgar. because Dettling recently installed a plantwide computer (Click the icon to view additional information.) For the upcoming year, Dettling's budgeted ABC 2 (Click the icon to view the additional data.) system. Dettling produces two wheel models: Standard and Deluxe. Budgeted data for the upcoming year are as follows 3(Click the icon to view the additional data.) rates are as follows: Read the requirements Requirement 1. Compute the total budgeted manufacturing overhead cost for the upcoming year. (Enter the rates to two decimal places.) Dettling Corporation Total Budgeted Indirect Manufacturing Costs Budgeted Quantity of Cost Allocation Base Activity Cost Total Budgeted Activity Allocation Rate Indirect Cost Materials handling Machine setups Insertion of parts Finishing Total budgeted indirect cost 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.) Dettling Corporation ABC Indirect Manufacturing Cost per Unit Cost Quantity of Cost Allocation Allocated Activity Cost Per Wheel Activity Allocation Rate Base Used By StandardDeluxe Standard Deluxe Machine setup Insertion of parts Finishing Total ABC allocated indirect cost Requirement 3. Compute the company's traditional plantwide overhead rate. Use this rate to determine the manufacturing overhead cost per wheel under the traditional system. n by identifying the formula to compute the current plantwide manufacturing overhead rate, then compute the rate Round your answer to the nearest cent.) Plantwide overhead rate per DL hour 1/3

Explanation / Answer

Requirement 1 :

Requirement 2:

Requirement 3:

Activity Budgeted Quantity of Cost Allocation Base Activity Cost Allocation Rate Total Budgeted Indirect Cost Materials Handling 10,000 parts $ 4.50 per part $ 45,000 Machine Setup 40 setups $ 325 per setup 13,000 Insertion of Parts 10,000 parts $ 31 per part 310,000 Finishing 4,000 direct labor hours $ 51 per hour 204,000 Total Budgeted Indirect Cost $ 572,000

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