Computing and using activity - based costing overhead allocation rates

Koehler makes handheld calculators in two models - basic and professional - and wants to further refine its costing system by allocating overhead using activity based costing. The estimated $721,000 of manufacturing overhead has been divided into three primary activities: Materials Handling, Machine Setup, and Insertion of Parts. The following data have been compiled:

	Materials Handling	Machine Setup	Insertion of Parts	Total
Overhead	$45,000	$136,000	$540,000	$721,000
Allocation base	Number of parts	Number of setups	Number of parts
Expected Usage:
Basic Model	32 parts per calculator	24 setups per year	32 parts per calculator
Professional Model	58 parts per calculator	44 setups per year	58 parts per calculator

1. Koehler expects to produce 200,000 basic models and 200,000 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? Round the materials handling allocation rate to four decimal places and the remaining allocation rates to the nearest cent.