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Zapata makes handheld calculators in two models--basic and professional--and wants to refine its costing system by allocating overhead using departmental rates. The estimated $851,500 of
Zapata makes handheld calculators in two models--basic and professional--and wants to refine its costing system by allocating overhead using departmental rates. The estimated $851,500 of manufacturing overhead has been divided into two cost pools: Assembly Department a Packaging Department. The following data have been compiled: (Click the icon to view the data.) Read the requirements. Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each department. (Abbreviation used: Qty = quantity. Enter the allocation rates to the nearest cent.) Predetermined OH X allocation rate Data Table Assembly Department Packaging Department Requirement Total Overhead costs $ 550,000 $ 301,500 $ 851,500 Machine hours: Basic Model Compute the predetermined overhead allocation rates using machine hours as the allocation base for the Assembly Department and direct labor hours for the Packaging Department. How much overhead is allocated to the basic model? To the professional model? Round allocation rates to two decimal places and allocated costs to whole dollars. 155,500 MHT 344,500 MHr 24,500 MHT 130,500 MHT 180,000 MHr 475,000 MHr Professional Model 500,000 MHr Total 655,000 MHT 155,000 MHT Direct labor hours: Basic Model Print Done 30,000 DLHr 157,500 DLHO 60,000 DLHO 442,500 DLHO 90,000 DLHr 600,000 DLHO Professional Model 187,500 DLHO 502,500 DLHr Total 690,000 DLHO Print Done Choose from any drop-down list and then click Check
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