please answer correct and complete with full working  Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Job 86 required the production of 200 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86 .

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Topic Video
Question

please answer correct and complete with full working 

Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Job 86 required the production of 200 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86 .

 

K
Fandrey, 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 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.)
Predetermined
OH
allocation rate
Transcribed Image Text:K Fandrey, 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 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.) Predetermined OH allocation rate
Fandrey, Inc. uses activity-based costing to account for its chrome bumper manufacturing process
insertio
- X
Data table
Activity
Materials handling
Machine setup
Insertion of parts
Finishing
Total Budgeted
Cost
Allocation Base
6,000 Number of parts
3,300 Number of setups
54,000 Number of parts
69,000 Finishing direct labor hours
132,300
Total
Fandrey expects to produce 500 chrome bumpers during the year. The bumpers are
expected to use 2,500 parts, require 10 setups, and consume 3,000 hours of finishing
time.
Print
Done
te. Then E
Transcribed Image Text:Fandrey, Inc. uses activity-based costing to account for its chrome bumper manufacturing process insertio - X Data table Activity Materials handling Machine setup Insertion of parts Finishing Total Budgeted Cost Allocation Base 6,000 Number of parts 3,300 Number of setups 54,000 Number of parts 69,000 Finishing direct labor hours 132,300 Total Fandrey expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 2,500 parts, require 10 setups, and consume 3,000 hours of finishing time. Print Done te. Then E
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 4 images

Blurred answer
Knowledge Booster
Costing Systems
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education