Keenan makes handheld calculators in two models-basic and professional. Keenan 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. The predetermined overhead allocation rate using machine hours as the allocation base is $1.90 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $532,000 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. More info - X Data table ssional model? Round Keenan wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $1,149,500 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled: Basic Model Manufacturing overhead-Assembly 342,100 $ 64,000 Professional Model 317,900 425,500 ecimal places, and the Overhead costs Allocation Base Expected usage: Materials Handling $63,000 Number of parts Machine Setup $456,500 Number of setups Insertion of Parts $630,000 Number of parts Total $ 1,149,500 Manufacturing overhead-Packaging Total manufacturing overhead cost $ 406,100 $ 743,400 Basic Model Professional Model 30 parts per calculator 60 parts per calculator 20 setups per year 35 setups per year 30 parts per calculator 60 parts per calculator Print Done Requirement 1. Keenan expects to produce 175,000 basic models and 175,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? Round the materials handling allocation rate to four decimal places and the remaining allocation rates to the nearest cent. 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 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 allocated to the basic model, and then compute the total overhead allocated to the professional model. Manufacturing overhead-Materials Handling Manufacturing overhead-Machine setup Basic Model Professional Model Manufacturing overhead-Insertion of Parts Total manufacturing overhead cost Requirement 2. Compare the activity-based costing results from Requirement 1 with the company's results using a single plantwide rate and using multiple department rates by summarizing the total and per unit overhead allocated to each model under each of the three different allocation methods. Round per unit amounts to the nearest cent. What conclusions can you draw? Begin by completing the table below to show the total and per unit overhead allocated to each model under each of the three different allocation methods. (Round per unit amounts to the nearest cent.) Requirement 2. Compare the activity-based costing results from Requirement 1 with the company's results using a single plantwide rate and using multiple department rates by summarizing the total and per unit overhead allocated to each model under each of the three different allocation methods. Round per unit amounts to the nearest cent. What conclusions can you draw? Begin by completing the table below to show the total and per unit overhead allocated to each model under each of the three different allocation methods. (Round per unit amounts to the nearest cent.) Single plantwide allocation rate Multiple department allocation rates Activity-based allocation rates What conclusions can you draw? The allocation using expected and the Basic Model Professional Model Total MOH Per Unit Total MOH Per Unit is the most accurate because it considers the resources used by each model. Management can now see that compared to the costs allocated using the single plantwide rate, the model cost more than expected to produce. model cost less than