Total Estimated Overhead Costs Assignment

Please do requirements 1-3.

%E19-20 (similar to) Question Help The company expects to produce 500 units of each model during the year. Empire Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2018: (Click the icon to view the allocation rates.) Empire produces two-wheel rim models: standard and deluxe. Expected data for 2018 are as follows: (Click the icon to view the expected data.) Read the requirements Requirement 1. Compute the total estimated indirect manufacturing cost for 2018

Total Estimated Overhead Costs Assignment

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I Requirements Begin by selecting the formula to compute the total estimated overhead (OH) costs. Total estimated overhead costs Predetermined overhead allocation rate X Total estimated qty of the allocation base Now compute the total estimated indirect manufacturing cost for 2018. 1. Compute the total estimated indirect manufacturing cost for 2018 2. Prior to 2018, Empire used a single plantwide overhead allocation rate system with direct labor hours as the allocation base.

Compute the predetermined overhead allocation rate based on direct labor hours for 2018. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each model, to the nearest cent. 3. Compute the estimated ABC indirect manufacturing cost per unit of each model for 2018. Carry each cost to the nearest cent Total Estimated Indirect Manufacturing Cost Activity Materials handling Machine setup Insertion of parts Data Table i Data Table Finishing Total estimated indirect manufacturing cost Standard 20 Deluxe 6.0 13.0 Activity 13.0

Materials handling Parts per rim Setups per 500 rims Finishing hours per rim Total direct labor hours per rim Predetermined Overhead Allocation Rate $ 2.00 per part 600.00 per setup 24.00 per part 40.00 per hour 6.5 Allocation Base Number of parts Number of setups Number of parts Number of finishing hours Machine setup 9.0 Insertion of parts Finishing Print Done Enter any number in the edit fields and then click Check Answer. Print Done A parts 4 remaining Clear All Check Answer.

Total Estimated Overhead Costs Assignment

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