Question
I am stuck I may be doing the wrong. Please advise. The question is: Argon makes handheld calculations in two models: Basic and Professional. Aragon
I am stuck I may be doing the wrong. Please advise.
The question is: Argon makes handheld calculations in two models: Basic and Professional. Aragon 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.
They want the predetermined overhead allocation rate using machine hours (MHr) as the allocation base. and how much overhead is allocated to the basic model as well as the professional model?
Would I just take the estimated overhead $851,500 and then divide it by the machine hours for each, 180,000 and 475,000?
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