s using different independent situations Data Table Estimate

s using different independent situations: Data Table Estimated quantity of allocation base Predetermined overhead rate $60.00 per DL hour Estimated manufacturing overhead costs Direct labor hours Direct labor dollars Machine hours 1,200,000 20,000 S 750,000 16,000 $ $ 160% of DL cost 1,200,000 $75.00 per MH Print Done percentages as a decimal to two places, X.xx.)

Solution

2. Predetermined overhead rate X Actual direct labor cost = Manufacturing overhead allocated

1.60 X 772500 = $1236000

3. Actual Machine Hours X Predetermined overhead Rate = Manufacturing overhead allocated

15550 X 75 = $1166250

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 overhead allocate or underallocate manufacturing overhead depending on the allocation base used and the actual manufacturing overhead for the year