Question

S3-7 (similar to) Question Help Falmouth Pools manufactures swimming pocl equipment. Falmouth has estimated the following manufacturing overhead rates using different independent situations: 囲(Click the icon to view the rates.) Determine the total manufacturing overhead allccated to Falmouth's manufacturing jobs in the following independent situaticns. 1.Assume that the company actually used 30,250 direct labor hours. 2. Assume that the company actually incurred $1,025,000 of direct labor cost. 3. Assume that the company actually ran the machines 23,450 hours. 4. Briefly explain what you have leamed about the total manufacturing overhead allocated to production. 1. Determine the total manufacturing overhead allocated to Falmouth's manufacturing jobs assuming that the company actually used 30,250 direct labor hours. Enter the formula and compute the total manufacturing overhead allocated to Falmouth's manufacturing jobs. Data Table Manufacturing overhead allocated Estimated manufacturing Estimated quantity Predetermined overhead costs 1,200,000 1,200,000 1,200,000 of allocation base overhead rate Direct labor hours S Direct labor dollars S Machine hours 30,000 S 1,000,000 24,000 $40.00 per DL hour 120% of DL cost $50.00 per MH Choose from any list or enter any number in the input fields and then click Check Answer. PrintDone parts

Answer 1

1	Actual direct labor hours	x	Predetermined overhead rate	=	Manufacturing overhead allocated
	30250	x	$                                                40.00	=	$                  1,210,000
2	Actual direct labor cost	x	Predetermined overhead rate	=	Manufacturing overhead allocated
	1025000	x	120%	=	$                  1,230,000
3	Actual machine hours	x	Predetermined overhead rate	=	Manufacturing overhead allocated
	23450	x	$                                                50.00	=	$                  1,172,500

4. The total amount of manufacturing overhead allocated during the year is dependent upon two factors the allocation base used and the actual quantity of the base used.

As a result, a company could either overallocate or underallocate manufacturing overhead depending on the allocation base used and the actual manufacturing overhead for the year.