Spacely, Corp. makes sprockets in two models: regular and professional, and wants to refine its costing system by allocating overhead using departmental rates. The estimated $843,100 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department.The following data has been compiled:Spacely, Corp.Assembly DepartmentPackaging DepartmentTotalOverhead costs$550,000$293,100$843,100Machine Hours: Regular Model153,00035,100188,100Professional Model352,40012,600365,000Direct Labor Hours: Regular Model40,30080,600120,900Professional Model322,700413,400736,100 (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the predetermined overhead allocation rates using machine hours as the allocation base forthe Assembly Department and direct labor hours for the Packaging Department.ModelRegular ModelProfessional ModelTotalDepartmentAssemblyDepartmentDepartmentPackagingDepartmentAssemblyDepartmentRegular ModelProfessionalModelPackingDepartmentRegularModelProfessionalModelAssembly Dept. Units Packaging Dept. UnitsMHrDLHrTotal estimatedoverhead costPredeterminedOverheadAllocation RatePredeterminedOverheadAllocation RateManufacturing OverheadMHrAssembly DepartmentPackaging DepartmentTotal Manufacturing Overhead CostsMHr??baseDLHrTotal estimatedquantity of theoverhead allocationDLHrActual Quantity? of the AllocationBase UsedActual Quantityof the AllocationBase UsedTotal==Total=ManufacturingOverhead Costs=Predetermined OverheadAllocation Rate (PerMachine Hour)2. How much overhead is allocated to the basic model? To the professional model?ManufacturingOverhead CostsRegular Model Professional ModelAllocatedManufacturingOverhead CostAllocatedManufacturingOverhead Cost

Name: Spacely, Corp. makes sprockets in two models: regular and professional
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Description: Spacely, Corp. makes sprockets in two models: regular and professional, and wants to refine its costing system by allocating overhead using departmental rates. The estimated $843,100 of manufacturing overhead has been divided into two cost pools: Ass

Predetermined overhead rate is a ration to allocate indirect manufacturing overhead.It can be…

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Spacely, Corp. makes sprockets in two models: regular and professional, and wants to refine its costing system by allocating overhead using departmental rates. The estimated $843,100 of manufacturing overhead has been divided into two cost pools: Assembly Department and Packaging Department.

The following data has been compiled:

Spacely, Corp.	Assembly Department	Packaging Department	Total
Overhead costs	$550,000	$293,100	$843,100
Machine Hours:
Regular Model	153,000	35,100	188,100
Professional Model	352,400	12,600	365,000
Direct Labor Hours:
Regular Model	40,300	80,600	120,900
Professional Model	322,700	413,400	736,100

(Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Compute the predetermined overhead allocation rates using machine hours as the allocation base for
the Assembly Department and direct labor hours for the Packaging Department.
Model
Regular Model
Professional Model
Total
Department
Assembly
Department
Department
Packaging
Department
Assembly
Department
Regular Model
Professional
Model
Packing
Department
Regular
Model
Professional
Model
Assembly Dept. Units Packaging Dept. Units
MHr
DLHr
Total estimated
overhead cost
Predetermined
Overhead
Allocation Rate
Predetermined
Overhead
Allocation Rate
Manufacturing Overhead
MHr
Assembly Department
Packaging Department
Total Manufacturing Overhead Costs
MHr
?
?
base
DLHr
Total estimated
quantity of the
overhead allocation
DLHr
Actual Quantity
? of the Allocation
Base Used
Actual Quantity
of the Allocation
Base Used
Total
=
=
Total
=
Manufacturing
Overhead Costs
=
Predetermined Overhead
Allocation Rate (Per
Machine Hour)
2. How much overhead is allocated to the basic model? To the professional model?
Manufacturing
Overhead Costs
Regular Model Professional Model
Allocated
Manufacturing
Overhead Cost
Allocated
Manufacturing
Overhead Cost

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