Question not well presented:
Materials handling:$8700:Number of parts
Machine setup:$4650:Number of setups
Insertion:of parts:$49,300:number of parts
Finishing:$75,600:Finishing direct labor hours
Total:$138,259
West Horizon expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 3,100 ​parts, require 25 ​setups, and consume 2,400 hours of finishing time. Job 420 used 100 ​parts, required 3 ​setups, and consumed 110 finishing hours. Job 510 used 450 ​parts, required 5 ​setups, and consumed 350 finishing hours
Answer:
For Machine Handling:. = $3 per part
For Machine Setup = $186 per Setup
For Insertion = $16 per part
For Finishing = $31.5 per hour
Explanation:
Cost allocation rate is calculated by:
Total activity overhead/(Total activity allocation base)
For Machine Handling:.
Total Activity Overhead = $8,700
Total Activity Allocation Base = 3,100
So, Cost Rate Allocation = $8,700/3,100
Cost Rate Allocation = 2.806451612903225
Cost Rate Allocation = $3 per part ----- Approximated to the nearest dollar
For Machine Setup
Total Activity Overhead = $4,650
Total Activity Allocation Base = 25
Cost Allocation Rate = $4,650/25
Cost Allocation Rate = $186 per Setup
For Insertion:
Total Activity Overhead = $49,300
Total Activity Allocation Base = 3,100
Cost Allocation Rate = $49,300/3,100
Cost Allocation Rate = $15.90322580645161
Cost Allocation Rate = $16 per part ------ Approximated to the nearest dollar
For Finishing:
Total Activity Overhead = $75,600
Total Activity Allocation Base = 2,400
Cost Allocation Rate = $75,600/2400
Cost Allocation Rate = $31.5 per hour
