Elkin Company manufactures wheel rims. The controller expects the following ABC allocation rates for 2024​: Activity Allocation Base Predetermined Overhead Allocation Rate Materials handling Number of parts $2.00 per part Machine setup Number of setups 700.00 per setup Insertion of parts Number of parts 25.00 per part Finishing Number of finishing hours 50.00 per hour   Elkin produces two wheel rim​ models: standard and deluxe. Expected data for 2024 are as​ follows:     Standard Deluxe Parts per rim 8.0 9.0 Setups per 500 rims 16.0 16.0 Finishing hours per rim 2.0 3.5 Total direct labor hours per rim 3.0 7.0 The company expects to produce 500 units of each model during the year.     Requirement 1. Compute the total estimated indirect manufacturing cost for 2024.   Begin by selecting the formula to compute the total estimated overhead​ (OH) costs.             Total estimated   ×   = overhead costs Now compute the total estimated indirect manufacturing cost for 2024.       Total Estimated Activity   Indirect Manufacturing Cost Materials handling     Machine setup     Insertion of parts     Finishing     Total estimated indirect manufacturing cost     Requirement 2. Prior to 2024​, Elkin 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 2024. Use this rate to determine the estimated indirect manufacturing cost per wheel rim for each​ model, to the nearest cent.   ​First, select the​ formula, and then enter the amounts to compute the allocation rate.       ÷   = Allocation rate     ÷   =   Use the single plantwide allocation rate to determine the indirect manufacturing cost per wheel rim for each​ model, to the nearest cent.   Indirect manufacturing cost per rim: Standard model:   Deluxe model:   Requirement 3. Compute the estimated ABC indirect manufacturing cost per unit of each model for 2024. Carry each cost per unit to the nearest cent.   Compute the costs per unit for the standard model​ first, then the deluxe model. ​(Carry the setup cost per rim to three decimal places. Round your final answers to the nearest​ cent.)       Allocated Mfg. Activity   OH Cost Per Rim     Standard Materials handling     Machine setup     Insertion of parts     Finishing     Total indirect cost per rim       Allocated Mfg.   OH Cost Per Rim   Deluxe

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Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.  

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.