Data table
tableActivityAllocation Base,tablePredetermined OverheadAllocation RateMaterials handling,Number of parts,$ per partMachine setup,Number of setups, per setupInsertion of parts,Number of parts, per partFinishingNumber of finishing hours, per hour
Data table
tableStandard,DeluxeParts per rim,Setups per rims,Finishing hours per rim,Total direct labor hours per rim,
Requirement Prior to Eason 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 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.
tableEstimated overhead costs,,$Estimated aty of the allocation base,Allocation rate$
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:
