2) Using the ABC method i. Determine the companys predetermined overhead rate(s) applied and the overhead applied to Fast ii. Provide the MOH true up journal entry required for this method at the end of the year

Work in excel only

b) GasGoesFast currently manufactures two different types (Fast and Slow) of cars in 2021. The controller believes the costing system, which currently only uses test as a cost driver, may be providing misleading cost information. They would like you to provide the JE required using the two methods, traditional and ABC. Fast Slow Actual Costs Fast Slow Budgeted Costs 12 35 16 25 18 22 200 19 22 400 Budgeted Sales (units) Assembly hours Inspection hours Paint Gallons Budgeted Sales (units) Assembly hours Inspection hours Paint Gallons 15 19 300 18 33 300 35 12 400 36 14 200 Tests 6 8 500 Tests 10 12 100 b) GasGoesFast currently manufactures two different types (Fast and Slow) of cars in 2021. The controller believes the costing system, which currently only uses test as a cost driver, may be providing misleading cost information. They would like you to provide the JE required using the two methods, traditional and ABC. Fast Slow Actual Costs Fast Slow Budgeted Costs 12 35 16 25 18 22 200 19 22 400 Budgeted Sales (units) Assembly hours Inspection hours Paint Gallons Budgeted Sales (units) Assembly hours Inspection hours Paint Gallons 15 19 300 18 33 300 35 12 400 36 14 200 Tests 6 8 500 Tests 10 12 100