Mt. Hood Manufacturing uses ABC to allocate manufacturing overhead costs, and has computed the following:

Activity Allocation Base Allocation Rate

Equipment Setup -Number of Setups- $400 per setup

Ordering -Number of Orders -$10 per order

Machine Maintenance -Machine Hours- $10 per hour

Receiving -Receiving Hours= $20 per hour

The company produces two models of industrial heaters, Crest and Cascade. The quantity of each activity required by Crest and Cascade is listed below.

Allocation Base Crest Cascade

Number of Setups 350 250

Number of Orders 6,000 12,000

Machine Hours 24,000 18,000

Receiving Hours 3,000 7,000

Allocate the $1,040,000 estimated manufacturing overhead between the products using activity-based costing to obtain the total manufacturing overhead cost per product. Reconcile the manufacturing overhead allocated to the two products with total manufacturing overhead.

Excel Skills Create formulas with cell references. And please let me know which formulas that you have placed in the cells.