Response to the following problem:
Frances Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are found on the data sheet. Frances Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,600 parts, require 15 setups, and consume 1,600 hours of finishing time. Job 420 used 100 parts, required 2 setups, and consumed 130 finishing hours. Job 510 used 400 parts, required 3 setups, and consumed 330 finishing hours.
Requirements
1. Compute the cost allocation rate for each activity. Begin in A1. Enter the Activity in column A, the rate in column B, and the driver in column C.
2. Compute the manufacturing overhead cost that should be assigned to Job 420. Begin in A6 by identifying the job number. Be sure to list the Activity in column A and the allocated manufacturing overhead in column B.
3. Compute the manufacturing overhead cost that should be assigned to Job 510. Begin in A13 by identifying the job number. Be sure to list the Activity in column A and the allocated manufacturing overhead in column B.