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Callahan Aquatics manufactures swimming pool equipment. Determine the total overallocation or underallocation of manufacturing overhead during the year. Actual manufacturing costs for the year totalled
Callahan Aquatics manufactures swimming pool equipment. Determine the total overallocation or underallocation of manufacturing overhead during the year. Actual manufacturing costs for the year totalled $2,650,000. 5 Click the icon to view data.) 1. Assume that Callahan used direct labour hours as the allocation base. 2. Assume that Callahan used the direct labour cost as the allocation base. 3. Assume that Callahan used machine hours as the allocation base. 4. Were there any situations in which jobs were costed correctly? If not, when were they overcosted? When were they undercosted? 1. Determine the total overallocation or underallocation of manufacturing overhead assuming that Callahan used direct labour hours as the allocation base. Manufacturing overhead is by $ Data Table Manufacturing Total manufacturing overhead rate Actual use overhead allocated Direct labour hours $ 42 61,900 $ 2,599,800 Direct labour dollars 208% $1,230,000 $ 2,558,400 Machine hours 67 45,800 $ 3,068,600 Print Done
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