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Goodson makes handheld calculators in two models-basic and professional. Goodson estimated S851, 500 of manufacturing overhead and 655,000 machine hours for the year. The basic model actually consumed 180,000 machine hours, and the professional model consumed 475,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.30 per machine hour, with the allocated overhead costs spit between the basic model and the professional model by $234,000 and $617, 500, respectively Requirement 1. Goodson expects to produce 250,000 basic models and 250,000 professional models. Compute the predetermined overhead allocation rates using activity-based costing. How much overhead is allocated to the basic model? To the professional model? Begin by selecting the formula to calculate the predetermined overhead (OH) allocation rate. Then enter the amounts to compute the allocation rate for each activity. (Abbreviation used: Qty = quantity. Enter the materials handling allocation rate to four decimal places, and the remaining allocation rates to the nearest cent.) How much overhead is allocated to the basic model? To the professional model? Begin by selecting the formula to allocate overhead (OH) costs. (Abbreviation used: Qty = quantity.) ________________ times ______________ = Allocated mfg. overhead costs Compute the total overhead allocated to the basic model, and then compute the total overhead allocated to the professional model. Requirement 2. Compare the activity-based costing results from Requirement 1 with the company's results using a single plantwide rate and using multiple department rates. What conclusions can you draw? Begin by completing the table below to show the total and per unit overhead allocated to each model under each of the three different allocation methods. (Round per unit amounts to the nearest cent.) What conclusions can you draw? The allocation using __________ is, the most accurate because it considers the resources used by each model, Management can now see that the __________ model cost less than expected and the __________ model cost more than expected to produce

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