E19-17 (similar to) Question Help Vernon makes handheld calculators in two models-basic and professional. Vernon estimated $937,500 of manufacturing overhead and 625,000 machine hours for the year. The basic model actually consumed 240,000 machine hours, and the professional model consumed 385,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.50 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $360,000 and $577,500, respectively, Click the icon to view the data using multiple department allocation rates.) (Click the icon to view additional data.) Read the requirements Requirement 1. Vemon expects to produce 200,000 basic models and 200,000 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 alocation rate to four decimal places, and the remaining allocation rates to the nearest cent.) Predetermined OH allocation rate A: Reg pred mod 0 Data Table - X Begi to ca allo Ints Basic Model Professional Model 326,250 $ 423.750 32,500 155,000 358,750 $ 578,750 Manufacturing overhead Assembly Manufacturing overhead Packaging Total manufacturing overhead cost bH $ Print A: Done Click the inn to view additional data * More Info X Vemon wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $937,500 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Total Machine Setup Insertion of Parts $365,500 $484,000 Number of setups Number of parts $ 937,500 Materials Handling Overhead costs $88,000 Allocation Base Number of parts Expected usage: 32 parts per Basic Model calculator 56 parts per Professional Model calculator 32 parts per 18 setups per year calculator 56 parts per 42 setups per year calculator Print Done