E19-17 (similar to) Goodson makes handheld calculators in two modelslong dash basic and professional. Goodson estimated $ 1 comma 149 comma 500 of manufacturing overhead and 605 comma 000 machine hours for the year. The basic model actually consumed 280 comma 000 machine hours, and the professional model consumed 325 comma 000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $ 1.90 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $ 532 comma 000 and $ 617 comma 500 , respectively. LOADING... (Click the icon to view the data using multiple department allocation rates.)

	Basic Model
Manufacturing overheadAssembly	$342,100
Manufacturing overheadPackaging	52,000
Total manufacturing overhead cost	$394,100

Professional Model

$317,900

437,500

$755,400

wants to further refine its costing system by allocating overhead using activity-based costing. The estimated

$ 1 comma 149 comma 500

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	$63,000	$456,500	$630,000	$1,149,500
Allocation Base	Number of parts	Number of setups	Number of parts
Expected usage:
Basic Model	30 parts per calculator	20 setups per year	30 parts per calculator
Professional Model	60 parts per calculator	35 setups per year	60 parts per calculator

1.

Goodson

expects to produce

175 comma 000

basic models and

175 comma 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?
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?

Requirement 1.

Goodson

expects to produce

175 comma 000

basic models and

175 comma 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 overhead costs		Estimated qty of the allocation base	=	allocation rate

Materials Handling

=

Please! help