# I Can T Determine How To Calculate The Cost Allocation Rate For The Activity I A

Frances Company uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incurmanufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and theirallocation bases are as follows:(Click the icon to view the budgeted costs and activity bases.)Frances Company expects to produce 1,000 chrome wheels during the year. The wheels are expected to use 2,750 parts, require 15 setups, and consume 1,700 hoursof finishing time.Job 420 used 300 parts, required 2 setups, and consumed 130 finishing hours.Job 510 used 475 parts, required 5 setups, and consumed 310 finishing hours.Read the requirements.Requirement 1. Compute the cost allocation rate for each activity. First identify the formula, then compute the rate for each activity.Activity costallocation rate