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MOH Allocation Problem ACME Widgets produces two models of widgets; Titanium and Platinum in two departments; Fabrication and Finishing. For the last fifty years ACME
MOH Allocation Problem ACME Widgets produces two models of widgets; Titanium and Platinum in two departments; Fabrication and Finishing. For the last fifty years ACME has allocated all MOH based on Mhrs. Req 1a) Compute the single, predetermined plant-wide MOH allocation rate. Req 1b) Compute the amount of MOH allocated to each product using the plant- wide rate. Req 2a) Compute departmental MOH allocation rates. Req 2b) Calculate the amount of MOH allocated to each product using departmental rates. Req 3a) Compute the activity based MOH allocation rates for the year 2025. Req 3b) Calculate the amount of overhead allocated to each product using ABC. Allocation Estimated MOH $200,000 Base MHE Estimated Total Quantity of Allocation Base: Titanium Platinum 2,500 MHT 500 MHT ACTUAL Total Quantity of Allocation Base: Titanium Platinum 2,600 MHT 550 MHE Plant-wide Estimated castimated Allocation Allocation Base Estimates by Product & Department: Allocation Base ACTUAL QUANTITIES by Department Base Dept Fabrication Finishing Total MOH $125,000 $75,000 $200,000 DES Titanium $15,000 300 DLS DLHO Platinum $35,000 125 DLH DLS DLH Titanium $15.500 DLS 310 DLHE Platinum $34,000 DLS 120 DLHE Activity Sanitizing Mat. Handling Packaging Quality Assurance Cust. Service Total MOH Estimated $19,000 $25,000 $113,000 $20,000 $23,000 $200,000 Allocation Base # of Set Ups of Pounds # of Orders of Tests of Cust Calls Allocation Base Estimates by Product & Activity Titanium Platinum 1,000 of Set Ups 1,000 of Set Ups 3,000 of Pounds 2,000 of Pounds 300 of Orders 360 Hof Orders 120 # of Tests 360 of Tests of Oust Calls 1,500 Hol Cost Calls Allocation Base ACTUAL QUATITIES by Activity: Titanium Platinum of Set Up 1,200 of Set Ups 3,100 of Pounds 2,010 of Pounds 305 of Orders 340 of Orders 110 of Tests 375 of Tests 790 of Oust Calls 1,480 of Custas 750
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