The HeatRadiator Company uses a​ normal-costing system with a single manufacturing overhead cost pool and​ machine-hours as the​ cost-allocation base. The following data are for 2017​:     Read the requirements2.   Requirement 1. Compute the budgeted manufacturing overhead rate for 2017.   Begin by selecting the formula you will use.​ Then, enter the amounts and calculate the rate.             Budgeted manufacturing     (1)   / (2)   = overhead rate       /   =     Requirement 2. Compute the​ under-or overallocated manufacturing overhead of Heat Radiator in 2017.   Begin by selecting the formula you will use.​ Next, enter the amounts in the formula and compute the​ under-or overallocated manufacturing overhead. ​(Use parentheses or a minus sign when entering overallocated​ amounts.)             Manufacturing overhead     (3)   – (4)   = under-allocated (overallocated)       –   =     a. Dispose of this amount using a​ write-off to Cost of Goods Sold. Show the account balances after the​ write-off.     Account Balance   After Proration Cost of Goods Sold   Finished Goods Control   Work-in-Process Control   b. Dispose of the amount using a proration based on ending balances​ (before proration) in​ Work-in-Process Control, Finished Goods​ Control, and Cost of Goods Sold. Begin by selecting the formula to calculate the adjustment to each account. Then enter the amounts in the formula. ​(Enter the proportions as a decimal to three decimal​ places, "X.XXX". Use a minus sign or parentheses to show overallocated amounts and adjustments to be​ subtracted.)     (5)   x (6)   = Adjustment COGS   x   =   FG   x   =   WIP   x   =   Now enter the account balances after the​ write-off.     Account Balance   After Proration Cost of Goods Sold   Finished Goods Control   Work-in-Process Control   c. Dispose of the amount using a proration based on the overhead allocated in 2017 ​(before proration) in the ending balances of​ Work-in-Process Control, Finished Goods​ Control, and Cost of Goods Sold. Begin by selecting the formula to calculate the adjustment to each account. Then enter the amounts in the formula. ​(Enter the proportions as a decimal to three decimal​ places, "X.XXX". Use a minus sign or parentheses to show overallocated amounts and adjustments to be​ subtracted.)     (7)   x (8)   = Adjustment COGS   x   =   FG   x   =   WIP   x   =   Now enter the account balances after the​ write-off.     Account Balance   After Proration Cost of Goods Sold   Finished Goods Control   Work-in-Process Control   Requirement 3. Which method do you prefer in requirement​ 2? Explain.   Alternative (9)      is theoretically preferred over (10)      . This alternative yields the same ending balances in work in​ process, finished​ goods, and cost of goods sold that would have been reported (11)      . 1: Data Table Budgeted manufacturing overhead costs $5,850,000 Overhead allocation base Machine-hours Budgeted machine-hours 90,000 Manufacturing overhead costs incurred $6,000,000 Actual machine-hours 85,000   ​Machine-hours data and the ending balances​ (before proration of​ under-or overallocated​ overhead) are as​ follows:     Actual Machine-Hours 2017 End-of-Year Balance Cost of Goods Sold 68,000 $8,800,000 Finished Goods Control 10,000 1,650,000 Work-in-Process Control 7,000 550,000 2: Requirements 1. Compute the budgeted manufacturing overhead rate for 2017. 2. Compute the​ under-or overallocated manufacturing overhead of Heat Radiator in 2017. Dispose of this amount using the​ following:   a. ​Write-off to Cost of Goods Sold b. Proration based on ending balances​ (before proration) in​ Work-in-Process Control, Finished Goods​ Control, and Cost of Goods Sold c. Proration based on the overhead allocated in 2017 ​(before proration) in the ending balances of​ Work-in-Process Control, Finished Goods​ Control, and Cost of Goods Sold 3. Which method do you prefer in requirement​ 2? Explain.

Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $24.82 per unit, while product B has been assigned $13.58 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information:    Cost Pools Activity Costs Cost Drivers Activity Driver Consumption Machine setup $ 158,000 Setup hours 2,000 Materials handling 112,000 Pounds of materials 16,000 Electric power 25,000 Kilowatt-hours 25,000   The following cost information pertains to the production of A and B, just two of Hakara's many products:     A B Number of units produced 5,000 10,000 Direct materials cost $ 32,000 $ 41,000 Direct labor cost $ 41,000 $ 38,000 Number of setup hours 100 200 Pounds of materials used 1,000 1,000 Kilowatt-hours 2,000 4,000   Required: 1. Use…

1.Sophie. Company prints custom training material forcorporations. The business was started January 1, 2014. The company uses a normal-costing system. It hastwo direct cost pools, materials and labor, and one indirect cost pool, overhead. Overhead is charged toprinting jobs on the basis of Machine hours. The following information is available for 2014. Budgeted direct labor costs . Budgeted overhead costs Budgeted direct labor Hour Budgeted machine Hours Costs of actual material used . $225,000 ..$315,000 31,500 .63,000 „$148,500 „$213,500 „$302,000 ...... Actual direct labor costs (29,500 Hrs).... Actual overhead costs Actual machine Hours 30000 There were two jobs in process on December 31, 2014: Job 11 and Job 12. Costs added to each job as of December 31 are as follows: Direct materials Direct labor MOH Applied Job 11 $4,870 $5,910 $5,100 $6,800 $7,030 $9,290 Job 12 Boris.Company has no finished goods inventories because all printing jobs are transferred to cost of goodssold when…

Required: a) Using Activity Based Costing, calculate the rate for each cost driver. b) Using activity based budgeting, prepare a budgeted yearly operating statement for Aero3D Ltd. Show the following separately, within the statement. i. The budgeted output for each product per year; ii. The contribution to profits for each product and in total before charging activity based costs; iii. The profit for each product and in total after charging activity based costs but before charging core costs (non-activity based costs); iv. The total profit after charging core based costs.