Koehler makes handheld calculators in two models-basic and professional. Koehler estimated $721,000 of manufacturing overhead and 515,000 machine hours for the year. The basic model actually consumed 230,000 machine hours, and the professional model consumed 285,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.40 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $322,000 and $399,000, respectively. |(Click the icon to view the data using multiple department allocation rates.) 1 (Click the icon to view additional data.) Read the requirements. Requirement 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? 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.) Predetermined OH Estimated qty of the allocation base Estimated overhead costs allocation rate Materials Handling $ 45,000 18,000,000 0.0025 Machine Setup Enter any number in the edit fields and then click Check Answer. ? More Info Koehler 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 costs $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 Print Done Data Table Basic Model Professional Model Manufacturing overhead-Assembly $ 203,500 $ 253,000 40,000 224,500 Manufacturing overhead-Packaging $ 243,500 $ 477,500 Total manufacturing overhead cost Print Done