Question: Therrien Pools manufactures swimming pool equipment Therrien estimates total manufacturing

Therrien Pools manufactures swimming pool equipment. Therrien estimates total manufacturing costs next year to be $1,200,000. Therrien also estimates it will use 50,000 direct labour hours and incur $1,000,000 of direct labour cost next year. In addition, the machines are expected to be run for 40,000 hours. Compute the predetermined manufacturing overhead rate for next year under the following independent situations:
1. Assume that Therrien uses direct labour hours as its manufacturing overhead allocation base.
2. Assume that Therrien uses direct labour cost as its manufacturing overhead allocation base.
3. Assume that Therrien uses machine hours as its manufacturing allocation base.

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  • CreatedApril 30, 2015
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