Tackett makes handheld calculators in two modelsbasic and professional. Tackett estimated $937,500 of manufacturing overhead and 625,000 machine hours for the year. The basic model actually consumed 240,000 machine hours, and the professional model consumed 385,000 machine hours. The predetermined overhead allocation rate using machine hours as the allocation base is $1.50 per machine hour, with the allocated overhead costs split between the basic model and the professional model by $360,000 and $577,500, respectively. (Click the icon to view the data using multiple department allocation rates.) (Click the icon to view additional data.) Read the requirements Requirement 1. Tackett 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 allocation rate More Info x Requirements Data Table Tackett wants to further refine its costing system by allocating overhead using activity-based costing. The estimated $937,500 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 Insertion of Parts Total Basic Model Professional Model Overhead costs $88,000 Machine Setup $365,500 Number of setups $484.000 $ 937,500 $ Number of parts Number of parts Manufacturing overheadAssembly Manufacturing overhead-Packaging 338,750 $ 45,000 411,250 142,500 1. Tackett 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? 2. Compare the activity-based costing results from Requirement 1 with the company's results using a single plantwide rate and using multiple department rates. What conclusions can you draw? Allocation Base Expected usage Basic Model Professional Model $ 383,750 $ 553,750 Total manufacturing overhead cost 32 parts per calculator 18 setups per year 56 parts per calculator 42 setups per year 32 parts per calculator 56 parts per calculator Print Done Print Done Print Done