Amberjack Company is trying to decide on an allocation base to use to assign manufacturing overhead to jobs. The company has always used direct labor hours to assign manufacturing overhead to products, but it is trying to decide whether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated data for manufacturing overhead, direct labor cost, direct labor hours, and machine hours for the most recent fiscal year are summarized here: Manufacturing overhead cost Direct labor cost Direct labor hours Me hours Estate Value $ 590,000 $ 392.000 16.100 hours 7.100 hours A Value $ 651.000 $ 446,00 17.600 hours 3.100 hours Required: 1. Based on the company's current allocation base (direct labor hours), compute the following a Predetermined overhead rate. (Round your answer to 2 decimal places.) b. Applied manufacturing overhead. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) c. Over- or underapplied manufacturing overhead (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount.) 2. If the company had used direct labor dollars (instead of direct labor hours) as its allocation base, compute the following a. Predetermined overhead rato (Round your answer to 2 decimal places. Le 3.63% b. Applied manufacturing overhead. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount) cover or underappled manufacturing overhead (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount) the company has used machine hours anstead of orect labor hours os its allocation base, compute the following a. Predetermined overhead rate, (Round your answer to 2 decimal places.) b. Apolled manufacturing overhead (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount) e Over or unde apped manufacturing overhead [Round your intermediate calculations to 2 decimal places and final answer to the nearest wilde dollar amount.) 4. Based on alone, which can ase would have guide the most accurate measure for applying mancung overheads to onduct sue company nad used machine hours (instead of direct labor hours) as its allocation base, compute the follow a. Predetermined overhead rate. (Round your answer to 2 decimal places.) b. Applied manufacturing overhead. (Round your Intermediate calculations to 2 decimal places and final answer whole dollar amount.) c Over-or underapplied manufacturing overhead. (Round your Intermediate calculations to 2 decimal places and the nearest whole dollar amount.) 4. Based on last year's data alone, which allocation base would have provided the most accurate measure for app overhead costs to production? per direct labor hour % of direct labor cost 1a. Predetermined Overhead Rate 1b. Applied Manufacturing Overhead 10. Manufacturing Overhead 2a. Predetermined Overhead Rate 2b. Applied Manufacturing Overhead 20. Manufacturing Overhead 3a. Predetermined Overhead Rate 3b. Applied Manufacturing Overhead 30. Manufacturing Overhead 4. Most accurate measure per machine hour
