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.)
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter4: Activity-based Costing
Section: Chapter Questions
Problem 11E: Lonsdale Inc. manufactures entry and dining room lighting fixtures. Five activities are used in...
Related questions
Question
2 part 2. Please fill in the blanks
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
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
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Follow-up Questions
Read through expert solutions to related follow-up questions below.
Follow-up Question
Job 86 required the production of
manufacturing cost allocated to Job 86. (Round all amounts to the nearest cent.)
130
bumpers and required one setup. Compute the indirect Solution
by Bartleby ExpertKnowledge Booster
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.Recommended textbooks for you
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College