Question: Aragon makes handheld calculators in two models basic and professional

Aragon makes handheld calculators in two models: basic and professional. Aragon estimated $851,500 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.
Compute the predetermined overhead allocation rate using machine hours (MHr) as the allocation base. How much overhead is allocated to the basic model? To the professional model?

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  • CreatedJune 15, 2015
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