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Therrien Pools manufactures swimming pool equipment. Therrien has estimated the following manufacturing overhead rates using different independent situations: E (Click the icon to view the
Therrien Pools manufactures swimming pool equipment. Therrien has estimated the following manufacturing overhead rates using different independent situations: E (Click the icon to view the rates.) Determine the total manufacturing overhead allocated to Therrien's manufacturing jobs in the following independent situations. 1. Assume that the company actually used 48,600 direct labor hours. 2. Assume that the company actually incurred $980,000 of direct labor cost. 3. Assume that the company actually ran the machines 37,100 hours. 4. Briefly explain what you have learned about the total manufacturing overhead allocated to production. 1. Determine the total manufacturing overhead allocated to Therrien's manufacturing jobs assuming that the company actually used 48,600 direct labor hours. Enter the formula and compute the total manufacturing overhead allocated to Therrien's manufacturing jobs. Manufacturing overhead allocated Data Table 2. Determine the total manufacturing overhead allocated to Therrien's manufacturing jobs assuming that the company actually incurred $980,000 of direct labor cost. Predetermined Enter the formula and compute the total manufacturing overhead allocated to Therrien's manufacturing jobs. (Enter whole percentages as a decimal to two places, X.XX.) Estimated manufacturing Estimated quantity overhead costs of allocation base overhead rate Manufacturing $ Direct labor hours Direct labor dollars $ 48,000 960,000 1,200,000 1,200,000 1,200,000 overhead allocated $ $25.00 per DL hour 125% of DL cost $32.00 per MH X Machine hours $ 37,500 3. Determine the total manufacturing overhead allocated to Therrien's manufacturing jobs assuming that the company actually ran the machines 37,100 hours. Print Enter the formula and compute the total manufacturing overhead allocated to Therrien's manufacturing jobs. Done Manufacturing overhead allocated 4. Briefly explain what you have learned about the total manufacturing overhead allocated to production. The total amount of manufacturing overhead allocated during the year is dependant upon two factors As a result, a company could either overallocate or underallocate manufacturing overhead depending on
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