omework 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, 16,000 units of M4100 and 8,000 units of M6100 and had the following revenues and costs H6100 $ 13,500,000 Total $ 38,000,000 HEI Income Statement M3100 M4100 $ 9,109,000 $ 15,900,000 2,500,000 4,200,000 570,000 090,000 3,500,000 1,790,000 30, 200,000 3,250.000 Sales revenue Direct costs Direct materials Direct labor Variable overhead Setting up machines Processing sales orders Warehousing Operating machines Shipping Contribution margin Plant adsinistration Gross profit 2,104,000 1,936,000 2.604,00 1,250,000 350,000 16,495,000 6.000.000 $ 10,490,000 MTI'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 6100 21 240 Activity Setting up machines Processing sales orders Warehousing Operating chines Shipping Cost Driver Production runs Sales orders received Units held in Inventory Machine-hour Units shipped M100 9 200 110 5.700 3.000 M4100 IN 4 210 9,00 16,000 2,600 9.000 The employee team recommends that plant administration costs not be allocated to products Required: o. Using machine hours to allocate overhead, complete the income statement for MTI. Do not allocate plant administrative costs to products b-1. Compute the cost driver rates. b-2. Complete the income statement using the activity based costing method suggested by the employee team Req A Req B1 Req B2 Using machine-hours to allocate overhead, complete the income statement for MTI. Do not allocate plant administrat to products. (Do not round intermediate calculations. Input all amounts as positive values.) MTI Income Statement M3100 M4100 M6100 Total $ 9,100,000 $ 15,900,000 $ 13,900,000 $ 38,900,000 2,500,000 570,000 4,200,000 890,000 3,500,000 1,790,000 10,200,000 3,250,000 Sales revenue Direct costs Direct material Direct labor Variable overhead Contribution margin Plant administration Gross profit 6,000,000 Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Compute the cost driver rates. Unit Rate per run Activity Setting up machines Processing sales orders Warehousing Operating machines Shipping per order per unit per machine-hr per unit shipped Req A Req B1 Reg B2 Complete the income statement using the activity-based costing method suggested by the employee team. (Input all amounts as positive values.) MTI Income Statement M3100 M4100 9,100,000 $ 15,900,000 $ M6100 13,900,000 $ Total 38,900,000 $ 2,500,000 570,000 4,200,000 890,000 3,500,000 1,790,000 10,200,000 3,250,000 Sales revenue Direct costs Direct material Direct labor Variable overhead Setting up machines Processing orders Warehousing Operating machines Shipping Contribution margin Plant administration Gross profit 2,304,000 1936.000 2,604,000 1,250,000 858,000 6.000.000
