Indirect Manufacturing Cost Per Unit
	Standard	Deluxe
ABC costs	$376.00	$444.00
Single-rate costs	$328.00	$492.00

If Elkins managers rely on the ABC unit cost data computed in 2024, which model will they produce? Carry each cost to the nearest cent. (Ignore selling and administrative expenses for this calculation.) 2. If the managers rely on the single plantwide overhead allocation rate cost data, which model will they produce? 3. Which course of action will yield more income for Elkin ?

2025	Standard	Deluxe
Sales price	$800.00	$940.00
Direct materials	31	48
Direct labor	45	52

Prescott makes handheld calculators in two models: basic and professional. Prescott estimated $624,000 of manufacturing overhead and 520,000 machine hours for the year. The basic model actually consumed 270,000 machine hours, and the professional model consumed 250,000 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.) =PredeterminedOHallocationrate=