Magic Speed currently manufactures two different types of products in 2021. The controller believes the costing system, which currently only uses inspections as a cost driver, may be providing misleading cost information. They would like you to provide the JE required using the two methods, traditional and ABC.

	Short	Long	Actual Hours
Budgeted Sales (Units)	12	20
Assembly Hours	5	35	400
Inspection Hours	6	18	300
Paint Gallons	8	34	400
Tests	10	7	500

	Short	Long	Budgeted Hours
Budgeted Sales (Units)	16	25
Assembly Hours	16	15	300
Inspection Hours	12	18	400
Paint Gallons	22	25	300
Tests	1	12	400

1) Using the traditional method i. Determine the companys predetermined overhead rate(s) applied & the overhead applied to Short ii. Provide the MOH true up journal entry required for this method at the end of the year 2) Using the ABC method i. Determine the companys predetermined overhead rate(s) applied & the overhead applied to Long ii. Provide the MOH true up journal entry required for this method at the end of the year