This lest: 100 point(s} possible This question: 2 point(s} possible Submit test Test: Exam 2 Question 9 of 36 Coupe Cabin (CC) designs and produces automotive pans In 2020. actual variable manufacturing overhead is $343.00!) CC's simple costing system allocates van'aole manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained ofbeing charged noncompetitive prices. so CC's controller Drew Smith realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources design. production. and engineering. interviews with the department personnel and examination of time records yield the following detailed information a (Click the icon to view the information.) Read the muiremenls. v Requirement1. Compute the manufactun'ng overhead allocated to each customer in 2020 using the simple costing system that uses machineahours as the allocation base. Determine the formula needed to calculate overhead using the simple costing method and then calculate CC's manufacturing overhead rate for 2020. (Round your answer to the nearest cent.) Total manufacturing overhead : Total machine hours I = Manufacturing overhead rate = = per machine hour Calculate the overhead allocated to each customer using the simple costing method (Round your answers to the nearest whole dollar} Machine Overhead Customer Hours Used Allocated State Motors v Holden Motors = Test: Exam 2 This test: 100 point(s) possible This question: 2 point(s) possible Submit test Coupe Cabin (CC) designs and produces automotive parts. In 2020, actual variable manufacturing overhead is $343,000. CC's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so CC's controller Drew Smith realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information: (Click the icon to view the information.) O Read the requirements. O Manufacturing overhead rate by dept. CC's 2020 manufacturing overhead rates by department are as follows: O Manufacturing Overhead Rate Department (by Department) O Design per Engineering per Production per O Calculate the overhead allocated to each customer, by department, using the departmental manufacturing overhead rates calculated in the previous step. Calculate the total overhead cost for each department and each customer. State Holden Island Next= Test: Exam 2 This test: 100 point(s) possible This question: 2 point(s) possible Submit test Coupe Cabin (CC) designs and produces automotive parts. In 2020, actual variable manufacturing overhead is $343,000. CC's simple costing system allocates variable manufacturing overhead to its three customers based on machine-hours and prices its contracts based on full costs. One of its customers has regularly complained of being charged noncompetitive prices, so CC's controller Drew Smith realizes that it is time to examine the consumption of overhead resources more closely. He knows that there are three main departments that consume overhead resources: design, production, and engineering. Interviews with the department personnel and examination of time records yield the following detailed information: (Click the icon to view the information.) O Read the requirements. O Calculate the overhead allocated to each customer, by department, using the departmental manufacturing overhead rates calculated in the previous step. Calculate the total overhead cost for each department and each customer. O State Holden Island Department Motors Motors Auto Total Design O Engineering Production O Total Requirement 3. Comment on your answers in requirements 1 and 2. Which customer do you think was complaining about being overcharged in the simple system? If the new department-based rates are used to price contracts, which customer(s) will be unhappy? How would you respond to these concerns? Next= Test: Exam 2