Question 17 GoGo Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made ofa Because of the different materials used, production requirements differ significantly across models in terms of three models. For this reason, GoGo has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company machine types and time requirements. However, once the parts are produced, assembly tSme per set is simlar for company had the following revenues and expenses for the year: prodaced $,000 Standerd sets, 500 Deluxe sets, and 2,000 Super sets. The GOGO LTD, Income Statement Year Ended December 31, 2020 Standard DeluxeSuperTotal Sales Direct costs $475,000 $380,000 $560,000 1,415,000 Direct materials Direct labour 200,000 150,000 240,000 590,000 54,000 14,000 24,000 92,000 Variable overhead costs: Machine set-ups 7 25,000 60,000 0,000 37,500 2520,500 Order processing Shipplng Contribution margin Fxed overhead costs: Plant administration Other 88,000 182,000 Gross profi The chief financial officer of GoGo has hired a consutant to recommend cost allocation bases. The consultant has recommended the folowing Activity Level Standard Deluxe SuperTotal 50 800 Cost Drivers No. of production runs 17 300 Machine set-ups The chief financial officer of GoGo has hired a consultant to recommend cost allocation bases. The consultant has recommended the following: Activity Level Standard Deluxe Super 17 300 100 Activities Cost Drivers Total Machine set-ups Sales order processing Warehouse costs Shipping No. of production runs No. of sales orders received No. of units held in inventory No. of units shipped 50 300 200 200 100 400 5,000 s00 2,000 7,500 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 notallocate any fixed overhead costs. (Round overhead rates to 3 decimal places. e-9, 25.22 places, e.g. 1525.) GOGO LTD. Income Statement Year Ended December 31, 2020 Deluxe Super Total $560,000$1.415,000 Sales Direct costs: $475,000 $380,000 200,000 54,000 150,000 14,000 240,000$90,000 92,000 Direct materials 24,000 Direct labour Variable overhead costs: Machine set-ups Order processing Warehouse Shipping 25,000 60,000 90,000 37,500 520,500 Contribution margin Fixed overhead costs: 88,000 The consultant found no basis for allocating the plant administration and other fixed overhead costs, and recommended th (a) Complete the income statement using the bases recommended by the consultant. Do not allocate any fixed overhead c places, e.g. 1525.) GOGO LTD. Income Statement Year Ended December 31, 2020 Standard Deluxe Super Total Sales $475,000 $380,000 $560,000 $1,415,000 Direct costs: Direct materials Direct labour 200,000 150,000 240,000 24,000 590,000 92,000 54,000 14,000 Variable overhead costs: Machine set-ups Order processing Warehouse 25,000 60,000 90,000 37,500 20,500 Shipping Contribution margin Fixed overhead costs: Plant administration 88,000 182,000 $250,500 Other Gross profit LINK TO TEXT LINK TO TEXT