Goodson makes handheld calculators in two models: basic and professional. Goodson estimated $1,149,500 of manufacturing overhead and 605,000 machine hours for the year. The basic model actually consumed 280,000 machine hours, and the professional model consumed 325,000 machine hours. Requirements 1. Compute the predetermined overhead allocation rate using machine hours (MHr) as the allocation base. 2 . How much overhead is allocated to the basic model? To the professional model? Requirement 1. Compute the predetermined overhead allocation rate using machine hours as the allocation base. Select the formula, and then enter the amounts to compute the predetermined overhead (OH) allocation rate. (Enter your answer to the nearest cent.) Estimated overhead costs Estimated qty of the allocation base = Predetermined OH allocation rate $ 1,149,500 605,000 $ 1.90 Requirement 2. How much overhead is allocated to the basic model? To the professional model? Select the formula, and then enter the amounts to compute the overhead (OH) allocated to the basic model and the professional model. Predetermined OH allocation rate * Actual qty of the allocation base used = Allocated OH costs Basic model Professional modelFarragut, Inc. uses activity-based costing to account for its chrome bumper manufacturing process. Company managers have identified four manufacturing activities: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the year and their allocation bases are as follows: (Click the icon to view the budgeted costs and activity bases.) Read the requirements. Requirement 1. Compute the predetermined overhead allocation rate for each activity. 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. (Round your answers to the nearest cent.) Predetermined OH Estimated overhead costs Estimated qty of the allocation base = allocation rate Materials handling $ 14,000 2,000 7.00 Machine setup $ 4,200 5 840.00 - X Data table Insertion of parts $ 45,000 2,000 22.50 Finishing 78,000 3,000 $ 26.00 Total Budgeted Requirement 2. Job 86 required the production of 180 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. Activity Cost Allocation Base Begin by selecting the formula to allocate overhead (OH) costs. Materials handling $ 14,000 Number of parts Predetermined OH allocation rate Expected qty of the allocation base used = Allocated mfg. overhead costs Machine setup 4,200 Number of setups Insertion of parts 45,000 Number of parts Job 86 required the production of 180 bumpers and required one setup. Compute the indirect manufacturing cost allocated to Job 86. (Round all amounts Finishing 78,000 Finishing direct labor hours Job 86: Allocated Mfg. OH Cost Total 141,200 Materials handling Farragut expects to produce 500 chrome bumpers during the year. The bumpers are Machine setup 840.00 expected to use 2,000 parts, require 5 setups, and consume 3,000 hours of finishing time. Insertion of parts Finishing Total mfg. OH costsZorahs, a national manufacturer of lawn-mowing and snow-blowing equipment, segments its business according to customer type: professional and residential. The following divisional information was available for the past year: (Click the icon to view the information.) Read the requirements. Requirement 1. Calculate each division's ROI. Round all of your answers to four decimal places. Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to two decimal places, X.XX%) Operating income Average total assets ROI Residential % Requirements - X Data table 1. Calculate each division's ROI. Round all of your answers to four decimal places. Net Sales Revenue Operating Income Average Total Assets Calculate each division's profit margin ratio. Interpret your results. Residential $ 550,000 $ 60,060 $ 182,000 IN 3. Calculate each division's asset turnover ratio. Interpret your results. Professional 1,060,000 162,680 392,000 4. Use the expanded ROI formula to confirm your results from Requirement 1. What can you conclude? Management has a 23% target rate of return for each division. Print Done Print Done