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Compute various manufacturing overhead rates?
I manufacture swimming pool equipment. I estimate total manufacturing costs next to be $1,200,000. I also estimate it will use 50,000 direct labor hours and incur $1,000,000 of direct labor cost next year. In addition, the machines are expected to be run for 40,000 hours. Compete the predetermined manufacturing overhead rate for next year under the following independent situations:
1. Assume that I use direct labor hours as its manufacturing overhead allocation base. 2. Assume that I use direct labor costs as its manufacturing overhead allocation base. 3. Assume that I use machine hours as its manufacturing allocation base. Please help me! |
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