Business, 06.05.2020 01:29 datboi995

Farragut Company 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: LOADING...(Click the icon to view the budgeted costs and activity bases.) Farragut Company expects to produce 1 comma 000 chrome wheels during the year. The wheels are expected to use 3 comma 000 parts, require 20 setups, and consume 2 comma 000 hours of finishing time. Job 420 used 200 parts, required 3 setups, and consumed 100 finishing hours. Job 510 used 450 parts, required 5 setups, and consumed 320 finishing hours. Read the requirements LOADING 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

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Farragut Company uses ABC to account for its chrome wheel manufacturing process. Company managers ha...

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