Allocate estimated manufacturing overhead between the products using activity-based costing to obtain the total manufacturing overhead cost per product. Reconcile the manufacturing 1 overhead allocated to the two products with total actual manufacturing overhead. 2 20 points 3 Manufacturing Overhead Estimates 4 Estimated cost of equipment set-ups: $240,000; Estimated quantity of equipment set-ups: 600 5 Estimated cost of ordering: $200,000; Estimated quantity of orders: 20,000 6 Estimated cost of machine hours: $ 450,000; Estimated quantity of machine hours used: 45,000 7 Estimated cost of receiving hours: $300,000; Estimated quantity of receiving hours used: 15,000 8 9 1. Calculate the allocation rate for each activity. 10 DATA 11 Activity Allocation Base Allocation Rate 12 Equipment Setup Number of Setups per setup 13 Ordering Number of Orders per order 14 Machine Maintenance Machine Hours per hour 15 Receiving Receiving Hours per hour 16 17 2. Calculate the MOH to be allocated for each product. 18 Crest Cascade 19 Allocation Base Quantity of Activity Manufacturing Overhead Allocation Base Quantity of Activity Manufacturing Overhead 20 Number of Setups 350 Number of Setups 250 21 Number of Orders 6,000 Number of Orders 12,000 22 Machine Hours Machine Hours 18,000 23 Receiving Hours 3,000 Receiving Hours 7,000 24 Total Manufacturing Overhead Total Manufacturing Overhead 25 26 Reconcile Manufacturing Overhead 27 Manufacturing Overhead allocated to Crest 28 Manufacturing Overhead allocated to Cascade 29 Total Manufacturing Overhead Allocated 30 31 Actual Manufacturing Overhead was $1,000,000; did Mt. Hood over or under allocate? By how much? 24,000 ENTERANCLAT