Koehler makes handheld calculators in two models-basic and professional. Koehler estimated $721,000 of manufacturing overhead and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Koehler makes handheld calculators in two models-basic and professional. Koehler estimated $721,000 of manufacturing overhead and 515,000 machine hours for the year. The basic model actually consumed 230,000 machine hours, and the professional model consumed 285,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.40 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $322,000 and $399,000, respectively. |(Click the icon to view the data using multiple department allocation rates.) 1 (Click the icon to view additional data.) Read the requirements. Requirement 1. Koehler expects to produce 200,000 basic models and 200,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? 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. (Abbreviation used: Qty = quantity. Enter the materials handling allocation rate to four decimal places, and the remaining allocation rates to the nearest cent.) Predetermined OH Estimated qty of the allocation base Estimated overhead costs allocation rate Materials Handling $ 45,000 18,000,000 0.0025 Machine Setup Enter any number in the edit fields and then click Check Answer. ? More Info Koehler wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $721,000 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Materials Handling Machine Setup Insertion of Parts Total Overhead costs $45,000 $136,000 $540,000 $ 721,000 Allocation Base Number of parts Number of setups Number of parts Expected usage: Basic Model 32 parts per calculator 24 setups per year 32 parts per calculator Professional Model 58 parts per calculator 44 setups per year 58 parts per calculator Print Done Data Table Basic Model Professional Model Manufacturing overhead-Assembly $ 203,500 $ 253,000 40,000 224,500 Manufacturing overhead-Packaging $ 243,500 $ 477,500 Total manufacturing overhead cost Print Done Koehler makes handheld calculators in two models-basic and professional. Koehler estimated $721,000 of manufacturing overhead and 515,000 machine hours for the year. The basic model actually consumed 230,000 machine hours, and the professional model consumed 285,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.40 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $322,000 and $399,000, respectively. |(Click the icon to view the data using multiple department allocation rates.) 1 (Click the icon to view additional data.) Read the requirements. Requirement 1. Koehler expects to produce 200,000 basic models and 200,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? 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. (Abbreviation used: Qty = quantity. Enter the materials handling allocation rate to four decimal places, and the remaining allocation rates to the nearest cent.) Predetermined OH Estimated qty of the allocation base Estimated overhead costs allocation rate Materials Handling $ 45,000 18,000,000 0.0025 Machine Setup Enter any number in the edit fields and then click Check Answer. ? More Info Koehler wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $721,000 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Materials Handling Machine Setup Insertion of Parts Total Overhead costs $45,000 $136,000 $540,000 $ 721,000 Allocation Base Number of parts Number of setups Number of parts Expected usage: Basic Model 32 parts per calculator 24 setups per year 32 parts per calculator Professional Model 58 parts per calculator 44 setups per year 58 parts per calculator Print Done Data Table Basic Model Professional Model Manufacturing overhead-Assembly $ 203,500 $ 253,000 40,000 224,500 Manufacturing overhead-Packaging $ 243,500 $ 477,500 Total manufacturing overhead cost Print Done
Expert Answer:
Answer rating: 100% (QA)
1 CALCULATION OF THE PREDETERMOINED OVERHEAD RATE Overhead R... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133255584
4th Edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
How is the predetermined overhead allocation rate used by service companies?
-
The predetermined overhead allocation rate for Forsythe, Inc. is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were: Direct...
-
How is the predetermined overhead allocation rate determined?
-
What is the result of the following? A. 0 B. 0.007 C. The code does not compile due to line 7. D. The code does not compile due to line 8. E. The code does not compile for another reason. 1: import...
-
For the reaction C2H2(g) + 4F2(g) 2CF4(g) + H2(g) So is equal to -358 J/ K. Use this value and data from Appendix 4 to calculate the value of So for CF4(g).
-
If the impeller of Problem 10.20 rotates between horizontal planes of infinite extent and the flow rate is \(25 \mathrm{~L} / \mathrm{s}\), what rise of pressure may be expected between one point...
-
Groups where the patterns of values outwardly reject those of the larger organization are ____________. (a) external adaptation rejectionist (b) cultural lag (c) countercultures (d) organizational...
-
The balance in retained earnings on January 1, 2014, for Palmer Inc. was $800,000. During the year, the corporation paid cash dividends of $90,000 and distributed a stock dividend of $8,000. In...
-
ABC Company Adjusted Trial Balance 31 December, 2017 Accounts Recievable Account Name Ref Debit Credit Cash $ 400,000.00 $ 30,000.00 $ 45,000.00 SSS $ 15,000.00 $ 40,000.00 office Suppliers office...
-
Submersibles with clear plastic hulls have the potential to revolutionize underwater leisure. One small submersible vehicle has a depth-control system as illustrated in Figure E4.9. (a) Determine the...
-
The intelligence community has found that the adversary is developing a capability that would be available six years from now. The current U.S. system doesn't have the ability to address the new...
-
Zappos remains committed to serving its customers and employees. So far, the company has retained its unique culture and continues to expand into new product categories. In one interview, Hsieh...
-
Lululemon focuses much of its efforts on the legacy that it will leave behind (the legacy it is creating now for future generations). Throughout the years, Lululemon has created a culture of...
-
Whole Foods strives to be a profitable company while also maintaining an ethical standpoint when making decisions related to its customers, employees, and all affected stakeholders. Consistently...
-
New Belgium Brewing Companys efforts to embody a sustainability-oriented business has paid off with a very loyal followingin fact, the company expanded the number of tours it offers of its facilities...
-
Walmart can be viewed through two very different lenses. Some think the company represents all that is wrong with America, while others love it. In response to criticism, and in an attempt to...
-
As the pain in my foot Select one: a. subsided b. preserved O c. reserved d. continued The supermarket has installed Select one: a. building b. memorizing crecycling d. fencing was able to walk the...
-
The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to...
-
Potters has acquired several other companies. Assume that Potters purchased Kittery for $ 6,000,000 cash. The book value of Kitterys assets is $ 12,000,000 (market value, $ 15,000,000), and it has...
-
What are the three relevant dates involving cash dividends? Describe each.
-
Consider the following three projects. All three have an initial investment of $ 600,000. Requirements 1. Determine the payback period of each project. Rank the projects from most desirable to least...
-
What criteria determine whether assets should be classified as current or non-current?
-
What are the main principles of financial reporting in accordance with IAS 1?
-
Gold Nest Company of Guandong, China, is a family-owned enterprise that makes birdcages for the South China market. A popular pastime among older Chinese men is to take their pet birds on daily...
Study smarter with the SolutionInn App