Data Table 1 Basic Model Professional Model Manufacturing overhead-Assembly Manufacturing overhead-Packaging Total manufacturing overhead cost 216,800 $ 51,750 268,550 $ 243,200 231,150 474,350 Print Done More Info Woodall wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $744,000 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 $54,000 Number of parts Machine Setup $204,000 Number of setups Insertion of Parts $486,000 Number of parts Total $ 744,000 Overhead costs Allocation Base Expected usage: Basic Model 34 parts per calculator 62 parts per calculator 20 setups per year 40 setups per year 34 parts per calculator 62 parts per calculator Professional Model Print Done Requirement 1. Woodall expects to produce 225,000 basic models and 225,000 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 he materials handling allocation rate o four decimal places, and he remaining allocation esto he nearest cent. Predetermined OH Estimated overhead costsEstimated qty of the allocation baseallocation rate Materials Handling Machine Setup Insertion of Parts How much overhead is allocated to the basic model? To the professional model? Begin by selecting the formula to allocate overhead (OH) costs. (Abbreviation used: Qtyquantity.) Predetermined OH allocation rate x Actual qty of the allocation base used Allocated mfg. overhead costs , = Compute the total overhead allocated to the basic model, and then compute the total overhead allocated to the professional model. Basic Model Professional Model Manufacturing overhead-Materials Handling Manufacturing overhead-Machine setup Manufacturing overhead-Insertion of Parts Total manufacturing overhead cost Requirement 2. Compare the activity-based costing results from Requirement 1 with the company's results using a single plantwide rate and using multiple department rates. What conclusions can you draw? Begin by completing the table below to show the total and per unit overhead allocated to each model under each of the three different allocation methods. (Round per unit amounts to the nearest cent.) Basic Model Professional Model Total MOH Per Unit Total MOH Per Unit Single plantwide allocation rate Multiple department allocation rates Activity-based allocation rates
