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53-6 (SIMllar tO) Question Help Falmouth Pools manufactures swimming pool equipment. Falmouth estimates total manufacturing overhead costs next year to be S1,200,000. Falmouth also estimates
53-6 (SIMllar tO) Question Help Falmouth Pools manufactures swimming pool equipment. Falmouth estimates total manufacturing overhead costs next year to be S1,200,000. Falmouth also estimates it will use 18,750 direct labor hours and incur $1,000,000 of direct labor cost next year. In addition, the machines are expected to be un for 15,000 hours. Compute the predetermined manufacturing overhead rate for next year under the following independent situations: . Assume that the company uses direct labor hours as its manufacturing overhead allocation base 2. Assume that the company uses direct labor cost as its manufacturing overhead allocation base. 3. Assume that the company uses machine hours as its manufacturing overhead allocation base. 1. Compute the predetermined manufacturing overhead rate for next year assuming that the company uses direct labor hours as its manufacturing overhead allocation base. Identify the formula and compute the predetermined manufacturing overhead rate for next year using direct labor hours as the manufacturing overhead allocation base Predetermined manufacturing overhead rate per DL hour Actual direct labor hours Actual manufacturing costs Estimated direct labor hours Estimated machine hours Estimated manufacturing overhead costs
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