GasGoesFast currently manufactures two different types (Fast and Slow) of cars in 2021.

The controller believes the costing system, which currently only uses test as a cost driver, may be

providing misleading cost information. They would like you to provide the JE required using the

two methods, traditional and ABC.

Fast Slow

Actual

Costs

Fast Slow

Budgeted

Costs

Budgeted

Sales (units)

12 35 100 Budgeted

Sales (units)

16 25 500

Assembly

hours

18 22 200 Assembly

hours

19 22 400

Inspection

hours

15 19 300 Inspection

hours

18 33 300

Paint Gallons 35 12 400 Paint Gallons 36 14 200

Tests 6 8 500 Tests 10 12 100

Using the ABC method

i. Determine the company's predetermined overhead rate(s) applied and the

overhead applied to Fast

ii. Provide the MOH true up journal entry required for this method at the end of the

year

Work in excel only