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Edmonton Pools manufactures swimming pool equipment. B(Click the icon to view data.) Determine the total overallocation or underallocation of manufacturing overhead during the year in
Edmonton Pools manufactures swimming pool equipment. B(Click the icon to view data.) Determine the total overallocation or underallocation of manufacturing overhead during the year in the following independent situations. Actual manufacturing costs for the year for Edmonton Pools totaled $1,425,000. 1. Assume that the company used direct labor hours as the allocation base. 2. Assume that the company used the direct labor cost as the allocation base 3. Assume that the company 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 during the year assuming that the company used direct labor hours as the allocation base. Actual manufacturing costs for the year for Edmonton Pools totaled $1,425,000. Determine the total overallocation or underallocation of manufacturing overhead during the year. Manufacturing overhead is Estimated manufacturing Estimated quantity Predetermined Allocated overhead costs of allocation base overhead rate overhead Direct labor hours Direct labor cost $ Machine hours$ ,400,000 ,400,000 1,000,000 ,400,000 0,000 $28.00 per DL hour 1,447,600 140% of DL cost $ 1,428,000 $35.00 per MH ,382,500 40,000
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