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Save Homework: M 7 Homework Part 1 of 7 Question 3 > B-Graded Score: 0 of 4 points Farragut, Inc. uses activity-based costing to account for its chrome bumpet 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) Road the requirements Requirement 1. Compute the predetermined overhead alocation 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 rato Data Table X he ula en Total Budgeted Activity Cost Allocation Base Materials handling $ 3,000 Number of parts Machine setup 4,200 Number of setups Insertion of parts 56,000 Number of parts 78,000 Finishing Finishing direct labor hours $ 141,200 Total Farragut expects to produce 500 chrome bumpers during the year. The bumpers are expected to use 2,000 parts, require 5 setups, and consume 1,500 hours of finishing time. Print Done - X Requirements 1. Compute the predetermined overhead allocation rate for each activity. 2. Job 86 required the production of 110 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Print Done

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