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1 Cost Management Systems: Activity-Based, Just-In-Time, and Quality Management Systems 2 Using Excel for allocating manufacturing overhead with activity-based costing (ABC) 4 Mt. Hood Manufacturing uses ABC to allocate manufacturing overhead costs, and has computed the following: 5 6 7 Activity Equipment Setup Ordering Machine Maintenance Machine Hours Receiving Allocation Base Number of Setups Number of Orders Allocation Rate $400 per setup $10 per order $10 per hour $20 per hour 10 Receiving Hours 12 The company produces two models of industrial heaters, Crest and Cascade 13 The quantity of each activity required by Crest and Cascade is listed below 14 15 16 17 18 19 20 Use the blue shaded areas on the ENTER-ANSWERS tab for inputs Allocation Base Number of Setups Number of Orders Machine Hours Receiving Hours Crest Cascade 350 6,000 24,000 3,000 250 12,000 18,000