Fitzgerald makes handheld calculators in two modelsbasic and professionaland wants to refine its costing system by allocating

Fitzgerald makes handheld calculators in two models—basic and professional—and wants to refine its costing system by allocating overhead using departmental rates. The estimated $ 812,500 of manufacturing overhead has been divided into two cost pools—Assembly Department and Packaging Department. The following data have been compiled:

Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. How much overhead is allocated to the basic model? To the professionalmodel?

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Assembly Department 650,000 Packaging Department Total Overhead costs Machine hours: Basic Model $ 162,500 $812,500 162,500 MHr 243,750 MHr 87,500 MHr 131,250 MHr 250,000 MHr 375,000 MHr Professional Model Direct labor hours: 80,000 DLHr 220,000 DLHr Basic Model 25,000 DLHr 71,875 DLHr 55,000 DLHr 148,125 DLHr Professional Model