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MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company
MTI makes three types of lawn tractors: M3100, M4100, and M6100. In the past, it allocated overhead to products using machine-hours. Last year, the company produced 9,000 units of M3100, 19,000 units of M4100, and 9,000 units of M6100 and had the following revenues and costs: MTl's controller has heard about activity-based costing and puts together an employee team to recommend cost allocation bases. The employee team recommends the following. b-1. Compute the cost driver rates. b-2. Complete the income statement using the activity-based costing method suggested by the employee team. Complete this question by entering your answers in the tabs below. Using machine-hours to allocate overhead, complete the income statement for MTI. Do not allocate plant administrative costs to products. (Do not round intermediate calculations. Input all amounts as positive values.) Complete this question by entering your answers in the tabs below. Complete the income statement using the activity-based costing method suggested by the employee team. (Input all amounts as positive values.)
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