Question: please help me with question GoGo Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel,
please help me with question

GoGo Ltd. manufactures three models of children's swing sets: Standard, Deluxe, and Super. The Standard set is made of steel, the Deluxe set is made of aluminum, and the Super set is made of a titanium-aluminum alloy. Because of the different materials used, production requirements differ significantly across models in terms of machine types and time requirements. However, once the parts are produced, assembly time per set is similar for the three models. For this reason, GoGo has adopted the practice of allocating overhead costs on the basis of machine hours. Last year, the company produced 5,000 Standard sets, 500 Deluxe sets, and 2.000 Super sets. The company had the following revenues and expenses for the year: GOGO LTD. Income Statement Year Ended December 31, 2020 Standard Deluxe Super $475,000 $380,000 $560,000 Total Sales $1.415,000 200,000 150,000 240,000 Direct costs: Direct materials Direct labour Variable overhead costs: 590,000 92,000 54,000 14,000 24,000 Actu Machine set-ups 24.750 Variable overhead costs: Machine set-ups Order processing ? ? ? 24,750 ? ? 59,850 Warehouse ? 2 ? 91,200 ? 33,520 ? ? 523,680 Shipping Contribution margin Fixed overhead costs: Plant administration Other Gross profit 88,230 183,570 $251,880 The chlef financial officer of GoGo has hired a consultant to recommend cost allocation bases. The consultant has recommended the following Activity Level Activities Cost Drivers Standard Deluxe Super Total Machine set-ups 23 12 20 55 No. of production runs No. of sales orders received Sales order processing 320 220 315 855 Question 5 of 6
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