Question

makes handheld calculators in two​ models: basic and professional. estimated of manufacturing overhead and machine hours for the year. The basic model actually consumed machine​ hours, and the professional model consumed machine hours. Requirements 1. Compute the predetermined overhead allocation rate using machine hours​ (MHr) as the allocation base. 2. How much overhead is allocated to the basic​ model? To the professional​ model? Requirement 1. Compute the predetermined overhead allocation rate using machine hours as the allocation base. Select the​ formula, and then enter the amounts to compute the predetermined overhead​ (OH) allocation rate. ​(Enter your answer to the nearest​ cent.) ÷ = Predetermined OH allocation rate ÷ =

Answer 1

Answer & Explanation:

1. Predetermined Overhead allocation

= Estimated manufacturing Overhead / Estimated machine hours

= 624,000/520,000

= $1.2 per machine hour

2. Overhead allocated to Basic Model

= 1.2 * 270,000 machine hours

= $324,000

Overhead allocated to Professional Model

= 1.2 * 250,000

= $300,000