inslow makes hendheld calculators in two models-basic end professional. Winslow estimated S1,149,500 of manufacturing overhead and 605,000 mechine hours for the year. The besic model actually consumed 280,000 machine hours, and the professional model consumed 325,000 machin hours. The predetermined overhead allacation rate using machine hours as the allocation base is $1.90 per machine hour, with alocated averhead costs split between the basic model and the prafessional model by $532,000 and S817,500, respactively (Click the icon to view the data using multiple department allocation rates.) Click the lcon to view additional data.)x Read the requirements Requirement 1. Winslaw expects to produce 175,000 basic madels and 175,000 professional models Campute the predetermined overhead allocation ratns using activitybased costing. How much overhead is allocatod to the basic model? o the professional mode? a to cajoulate the predetermined overhead (OH) allocation rate, Then enter the amounts to compute the alocation rate for each activity, (Abbrevialion used: Qty-quantity, Enter 1the materials handing alocation rate to four decimal places, and the for mrainiea elocation.ratas to the nearast cant." Predelermined OH allacatian rate Materlals Handing Machine Setup Insertion of Parts How much overhead is allocated to the basic madel? Ta the professional model? Begin by selecling the farmula to alocate overhead (OH) cosls. (Abbreviation used: Qly quantity.) Alocated mig. overhead costs Compute the total overhead allacaled to the basic model, and then compute the total overhead allacated to the professional model Basic Model Professional Model Manufacturing overhead-Materials Handling Manufecturing overhead-Machine setup Manufacturing overhead-Insertion of Parts Total manufacturing overhead cost Requirement 2. Compare the activity-based costing reeulls from Requirement 1 wilh the company's resulls using a single plantwide rale and using mulliple department rates. What condusions can you draw? completing thn table balow to shaw the tatal and per unit averhead allocated ta each madel under each af the three different alocation methods. (Round per unit amounts to the nearest cent) Begin Requirement 2. Compare the activity-based costing results from Requirement 1 with the compeny's results using a single plantwide rate and using multiple department rates. What conclusions a you draw? Begin by completing the table below to show the tolal and per unil overhead allocated to eadh model under each of the three different alocation melhods. (Round per u it amounts lo the nearest cent.) Basic Model Professional Model Total MOH Per Unit Total MOH Per Unit Single plantwide alocation rate Multiple department alocation rates Activity-based allocation rates What conclusions can vou drew? The alocation using is the mast accurale because it considers the resources used b costs alocated using the single plantwide rale, the model cost less thar pach model, Management can now see that oompared tp mpdel cast more than expected exaected a the du Data Table More Info Winslow wants estimated $1,149,500 of manufacturing overthead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: further refine its costing system by allocating overhead using activity-based costing. The Professional Model Basic Model 404,800 $ Manufacturing overhead-Assembly 255.200 36.000 453,500 Total Manufacturing overhead-Packaging Materials Handling Machine Setup Insertion of Parts 440,800 $ 708.700 Overhead costs $63.000 $456,500 S630,000 1.149.500 Total manufacturing overhead cost Number of parts Allocation Base Number setups Number parts Expected usage: Print Done 30 parts per calculator 20 setups per year Basic Model 30 parts per calculator Professional Model 60 parts per calculator 0 parts per calculator 35 setups per year
