Keenan makes handheld calculators in two models--- basic and professional. Keenan 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 modeal consumed 475,000 machine hours.

REQUIREMENTS

1. Compute the predetermined overhead allocation rate using machine hours as the allocation base

2. How much overhead is allocated to the basic model? To the professional model?

REQUIREMENT 1. Compute the predetermined overhead allocation rate using machine hours as the allocation base.

-Select the formula, and then enter the amounts to compute the predetermined overhead (OH) allocation rate. (Enter your answer to the nearest cent.)

__________________ / ____________________ = Predetermined OH allocation rate

__________________/_____________________=__________________________________

(options listed below for requirement 1 first line only)

-Actual Overhead Cost / -Actual overhead Cost

-Actual qty of the allocation base used / -Actual qty of the allocation base used

-estimated overhead costs / - estimated overhead costs

-estimated qty of the allocation base / - estimated qty of the allocation base

REQUIREMENT 2. How much overhead is allocated to the basic Model? To the professional Model?

-Select the formula, And then enter the amounts to compute the overhead (OH) allocated to the basic model and the professional model.

_____________________________X_________________________=Allocated OH Costs

Basic model ________________x________________________=______________________

Professional model_________x_______________________=_______________________

(options below for requirement 2 first line only)

-actual overhead cost x actual overhead cost = allocated OH costs

-Actual qty of the allocation base used x Actual qty of the allocation base used = allocated OH Costs

-Estimated overhead costs x Estimated overhead Costs - allocated OH costs

-Estimated qty of the allocation base x Estimated qty of the allocation base = allocated OH costs

-Predetermined OH allocation rate x Predetermined OH allocation rate = Allocated OH costs