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Amberjeck Company is trying to decide on an allocation base to use to sssign manufacturing overhead to jobs. The compary has always used ofrect labor
Amberjeck Company is trying to decide on an allocation base to use to sssign manufacturing overhead to jobs. The compary has always used ofrect labor hours to assign manufacturing overhead to praducts, but it is trying to decide whiether it should use a different allocation base such as direct labor dollars or machine hours. Actual and estimated dath for manufacturing overtuead dicer labor cost, direct labor hours, and machine hours for the most recent fiscal jear are summarized here: Required: 1. Based on the company/s curfent allocation base (d tect labor hours) compute the followhy. a. Predetermined overhead rate. Note: Round your answer to 2 decimal plecta. b. Apolied manufacturing Overhead. c. Over or underapplied manufacturing overhead Note: Round your Intermedlate celeulatlons to 2 decimel places and finat enawer to the neareat whole dollar bmeunt. 2 if the company had used direct labor dollars (instend of direct labor hours) as its alocaton base, compute the following a. Prederermined overhead tate: Nete: Round your antwer to 2 declimal places, l.e. 3.03%. b. Appled ranufacturing overnesd Note: Round your intermedlate coleulations to 2 decimal places and final anvwrt to the netert whele dellar amount: c. Over: or underapplied manufacturing ovemead. Note: Round your Intermediete caleulasions to 2 decimal places and final anawer to the nesrest whole dosar amaunt. s. Predeterm ined overhead rate. Note: Round your answer to 2 declmal ploces. b. Appied manufacturing overhead. Note: Pound your intermediate calculations to 2 decimal places snd find answer to the rearteat whole dobar ameunt. c. Over-or underapplied manufactariog overbed evertesd costh to srodust on
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