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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
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: 1. Based on the company's current allocation base (direct labor hours) compute the following: a. Predetermined overhead rate Note: Round your answer to 2 decimal places. b. Applied manufacturing overhead Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over-or underapplied manufacturing overhead Note: Round your intermediate calculations to 2 decimal places and finial 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 rate. Note: Round your answer to 2 decimal places, i.e. 3.63% b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final andiver to the nearest whole dollar amount. c. Over-or underapplied manufacturing overhead Note: Round your intermediate calculations to 2 decimol places and final answer to the nearest whole dollar amount. 3. If the company had used machine hours (instead of direct labor hours) as its allocation base, compute the following: a. Predetermined overhead rate, Note: Round your answer to 2 decimal places. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. b. Applied manufacturing overhead. Note: Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollar amount. c. Over-or underapplied manufacturing overhead. \begin{tabular}{|l|l|l|} \hline 1a. Predetermined Overhead Rate & per DLH \\ \hline 1b. Applied Manufacturing Overhead & & \\ \hline 1c. Manufacturing Overhead & & \% of direct labor cost \\ \hline 2a. Predetermined Overhead Rate & & per machine hour \\ \hline 2b. Applied Manufacturing Overhead & & \\ \hline 2c. Manufacturing Overhead & & \\ \hline 3a. Predetermined Overhead Rate & & \\ \hline 3b. Applied Manufacturing Overhead & & \\ \hline 3c. Manufacturing Overhead & & \\ \hline 4. Most accurate measure & & \\ \hline \end{tabular}
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