PLUS Weygandt, Managerial Accounting, Fifth Canadian Edition LOS Help System Announcements NEXT URCES Question 16 GoGo Ltd manufactures three models of children's swing sets Standard, Deluxe, and Super The Standard set is made of steel, the Deluwe made of aluminum, and the Super set is made of a titanium-aluminum alloy. Because of the different materials used, production requirements differ significantly across models in terms of machine types and time requirements. However, once the parts are produced, assembly time per set is similar for the three models. For this reason, GoGo has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company produced 5,000 Standard sets, 500 Deluwe sets, and 2.000 Super sets. The company had the following revenues and expenses for the year GOGO LTD. Income Statement Year Ended December 31, 2020 Standard Deluxe Super $475,000 $380,000 $500,000 Total $1,415,000 200,000 54,000 150,000 14,000 240,000 24,000 590,000 92.000 ? 24.940 Direct materials Direct labour Variable overhead costs: Machine set-ups Order processing Warehouse Shipping Contribution margin Fixed overhead costs: Plant administration Other Gross profit 90,2.50 35,350 523,625 68.20 153,650 1251,655 The chief financial officer of GoGo has hired a consultant to recommend cost allocation bases. The consultant has recommended the following: Activity Level Activities Cost Drivers Standard Deluxe Super Total Machine set-ups No. of production runs 23 11 2 4 Sales order processing No. of sales orders received 315 2 45 3 45 9 05 Warehouse costs No. of units held in inventory 225 100 150 475 Shipping No. of units shipped 5.870 590 2,380 3,840 The consultant found no basis for allocating the plant administration and other fixed overhead costs, and recommended that they not be applied to products. (a) Complete the income statement using the bases recommended by the consultant. Do not allocate any fixed overhead costs. (Round overhead rates to 3 decimal places... 25.225 and final answers to decimal places, g. 1525.) GOGO LTD. U TIS Weygandt, Managerial Accounting, Fifth Canadian Edition ltem Avents The ch a nc e of GoGo has hired a constant to recommend cost allocation bases. The constant has recommended the following: Activity Level Deluxe Super Standard Total Activities Machinese- Sales order processing Warehouse cost Shipping Cost Drivers No. of production runs No. of sales orders received No. oft held in inventory No. of units shipped 905 315 225 5,870 245 100 590 345 150 2,380 8.840 The consultant found no basis for allocating the plant administration and other wed overhead costs, and recommended that they not be applied to products. (a) Complete the income statement using the bases recommended by the consultant. Do not allocate any fed overhead costs. (Round overhead rates to inal answers to decimal places, 1525.) decimal places... 25.225 and GOGO LTD. Income Statement Year Ended December 31, 2020 Standard Deluxe $475,000 $380,000 Super $560,000 $1,415,000 590,000 Direct costs Direct materials Direct labour Variable overhead costs: 200,000 54,000 150,000 14,000 240,000 24,000 Machine set-ups 24,040 Order processing 58,825 Warehouse 90,250 Shipping 35,360 Contribution margin 523,625 88,290 Fixed overhead costs Plant administration Other Gross profit $251,655