HELP WITH ACCOUNT 2 PROBLEM
Goodson makes handheld calculators in two models-basic and professional. Goodson estimated $851,500 of manufacturing overhead and 655,000 machine hours for the year. The basic model actually consumed 180,000 machine hours, and the professional model consumed 475,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.30 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $234,000 and $617,500, 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. Goodson expects to produce 250,000 basic models and 250,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the profossional 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 / I Estimated qty of the allocation base allocation rate = Materials Handling Machine Setup Insertion of Parts How much overhead is allocated to the basic model? To the professional model? Begin by selecting the formula to allocate overhead (OH) costs. (Abbreviation used: Qty quantity.) - Allocated mfg. overhead costs Compute the total overhead alocated to the basic model, and then compute the total overhead allocated to the professional model. Basic Model Professional Model Total manufacturing overhead cost Goodson makes handheld calculators in two models-basic and professional. Goodson estimated $851,500 of manufacturing overhead and 655,000 machine hours for the year. The basic model actually consumed 180,000 machine hours, and the professional model consumed 475,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.30 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $234,000 and $617,500, 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. Goodson expects to produce 250,000 basic models and 250,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the profossional 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 / I Estimated qty of the allocation base allocation rate = Materials Handling Machine Setup Insertion of Parts How much overhead is allocated to the basic model? To the professional model? Begin by selecting the formula to allocate overhead (OH) costs. (Abbreviation used: Qty quantity.) - Allocated mfg. overhead costs Compute the total overhead alocated to the basic model, and then compute the total overhead allocated to the professional model. Basic Model Professional Model Total manufacturing overhead cost
