GoGo Ltd. manufactures three models of childrens swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a titanium-aluminum alloy. Because of the different materials used, production requirements differ significantly across models in terms of machine types and time requirements. However, once the parts are produced, assembly time per set is similar for the three models. For this reason, GoGo has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company produced 5,000 Standard sets, 500 Deluxe sets, and 2,000 Super sets. The company had the following revenues and expenses for the year:

GoGo Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a titanium-aluminum alloy. Because of the different materials used, production requirements differ significantly across models in terms of machine types and time requirements. However, once the parts are produced, assembly time per set is similar for the three models. For this reason, GoGo has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company produced 5,000 Standard sets, 500 Deluxe sets, and 2,000 Super sets. The company had the following revenues and expenses for the year: GOGO LTD. Income Statement Year Ended December 31, 2020 Standard Deluxe Super $475,000 $380.000 $560.000 Total $1,415.000 200,000 54,000 150.000 14.000 240,000 24.000 590,000 92.000 ? ? ? Sales Direct costs: Direct materials Direct labour Variable overhead costs: Machine set-ups Order processing Warehouse Shipping Contribution margin Fixed overhead costs: Plant administration Other Gross profit ? ? ? ? ? 2 2 2 ? 2 24.940 61,250 90.250 34,360 522.200 ? ? ? 89.010 182.100 $251,090 The chief financial officer of GoGo has hired a consultant to recommend cost allocation bases. The consultant has recommended the following: Activities Machine set-ups Sales order processing Warehouse costs Shipping Cost Drivers No. of production runs No. of sales orders received No. of units held in inventory No. of units shipped Standard 24 350 210 5,690 Activity Level Deluxe Super 14 20 215 310 115 150 590 2,310 Total 58 875 475 8,590 The consultant found no basis for allocating the plant administration and other fixed overhead costs, and recommended that they not be applied to products. (a) Complete the income statement using the bases recommended by the consultant. Do not allocate any fixed overhead costs. (Round overhead rates to 3 decimal places.eg, 25.225 and final answers to decimal places, eg, 1525.) GOGO LTD. Income Statement Year Ended December 31, 2020 Deluxe $380,000 Standard $475,000 Super Total $1,415,000 $560.000 200,000 150,000 240,000 590,000 54,000 14,000 24,000 92,000 ales irect costs: Direct aterials Direct labour ariable verhead osts: Machine set- ps Order rocessing 8800 7030 8880 24,940 61,250 Warehouse 90,250 Shipping 34,360 $ $ $ 522,200 ontribution largin ixed verhead osts: Plant ministration Other ross profit 89,010 182,100 $251,090