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Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows: E (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 a - X Data Table Predetermined OH Estimated overhead costs Estimated qty of the allocation base - allocation rate Total Budgeted Cost Materials handling $ 12,000 4,000 3.00 Allocation Base Activity Materials handlings Machine setup 3,100 10 310.00 12,000 Number of parts Insertion of parts $4 42,000 4,000 10.50 Machine setup 3,100 Number of setups Finishing 86,000 1,000 86.00 Insertion of parts 42,000 Number of parts Finishing 86,000 Finishing direct labor hours Requirement 2. Compute the expected indirect manufacturing cost of each bumper. 143,100 Total Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing Begin by selecting the formula to allocate overhead (OH) costs. - Allocated mfg. overhead costs Predetermined OH allocation rate Expected qty of the allocation base used time. Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.)

Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows: E (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 a - X Data Table Predetermined OH Estimated overhead costs Estimated qty of the allocation base - allocation rate Total Budgeted Cost Materials handling $ 12,000 4,000 3.00 Allocation Base Activity Materials handlings Machine setup 3,100 10 310.00 12,000 Number of parts Insertion of parts $4 42,000 4,000 10.50 Machine setup 3,100 Number of setups Finishing 86,000 1,000 86.00 Insertion of parts 42,000 Number of parts Finishing 86,000 Finishing direct labor hours Requirement 2. Compute the expected indirect manufacturing cost of each bumper. 143,100 Total Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing Begin by selecting the formula to allocate overhead (OH) costs. - Allocated mfg. overhead costs Predetermined OH allocation rate Expected qty of the allocation base used time. Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.)

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 8EA: Rex Industries has identified three different activities as cost drivers: machine setups, machine...
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Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.) Allocated Mfg. OH Cost Materials handling Machine setup Insertion of parts Finishing Total mfg. OH costs Number of bumpers Mfg. OH cost per bumper
Transcribed Image Text:Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.) Allocated Mfg. OH Cost Materials handling Machine setup Insertion of parts Finishing Total mfg. OH costs Number of bumpers Mfg. OH cost per bumper
Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows: E (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 al - X Data Table Predetermined OH Estimated overhead costs Estimated gty of the allocation base allocation rate Total Budgeted Cost Materials handling $ 12,000 4,000 = $ 3.00 Activity Allocation Base Machine setup $ 3,100 10 = $ 310.00 Materials handling $ 12.000 Number of parts Insertion of parts $ 42,000 4,000 = $ 10.50 Machine setup 3,100 Number of setups Finishing $ 86,000 1,000 = $ 86.00 Insertion of parts 42,000 Number of parts 86,000 Finishing Finishing direct labor hours Requirement 2. Compute the expected indirect manufacturing cost of each bumper. $ 143,100 Total Begin by selecting the formula to allocate overhead (OH) costs. Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Predetermined OH allocation rate Expected qty of the allocation base used = Allocated mfg. overhead costs Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.) Allocated Mfa. OH Cost
Transcribed Image Text:Franklin, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for 2018 and their allocation bases are as follows: E (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 al - X Data Table Predetermined OH Estimated overhead costs Estimated gty of the allocation base allocation rate Total Budgeted Cost Materials handling $ 12,000 4,000 = $ 3.00 Activity Allocation Base Machine setup $ 3,100 10 = $ 310.00 Materials handling $ 12.000 Number of parts Insertion of parts $ 42,000 4,000 = $ 10.50 Machine setup 3,100 Number of setups Finishing $ 86,000 1,000 = $ 86.00 Insertion of parts 42,000 Number of parts 86,000 Finishing Finishing direct labor hours Requirement 2. Compute the expected indirect manufacturing cost of each bumper. $ 143,100 Total Begin by selecting the formula to allocate overhead (OH) costs. Franklin expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 4,000 parts, require 10 setups, and consume 1,000 hours of finishing time. Predetermined OH allocation rate Expected qty of the allocation base used = Allocated mfg. overhead costs Now compute the expected indirect manufacturing cost of each bumper. (Round the cost per bumper to the nearest cent.) Allocated Mfa. OH Cost
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Job 86 required the production of
130
bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. ​(Round all amounts to the nearest​ cent.)
 
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