Current Attempt in Progress Calculate the departmental MOH rates and allocate costs to the two park bench models as if Nash continues to follow its current

two$-$department MOH system. $($Round MOH rates to $2$ decimal places, e$.$g$.15\mathrm{.}25.)$

Departmental Rate

Assembly

$

per machine hour

Finishing

$

per DL hour

MOH Applied to Classic Benches

MOH Applied to Modern Benches $($b$)$

Calculate activity$-$based MOH rates and allocate costs to the two models as if Nash switches to an ABC method for understanding

and allocating its MOH costs. $($Round MOH rates to $2$ decimal places, eg$.15\mathrm{.}25.)$

MOH Applied to Classic Line MOH Applied to Modern Line

eTextbook and Media

Nash Corp. makes many products but is best known for its two styles of park benches: Classic and Modern. Nash initially set up its

MOH allocation system to pool all MOH costs into two key departments: Assembly and Finishing. It based Assembly MOH costs on

machine hours, and Finishing MOH costs on DL hours. The company understood its costs, set selling prices to cover its costs, and

carried on smoothly$-$until now. Nash's president received some phone calls from community members complaining about the bench

pricing and reporting that a non$-$community supplier is priced $25\%$ lower than Nash's listed price.

In an effort to better understand its costs, Nash's accountants gathered the following information for the two departments. Then it

found more detailed information on key $$ctivities within its overhead costs.