Question: S3-7 Continuation of S3-6: compute total allocated overhead (Learning Objective 3) Use your answers from S3-6 to determine the total manufacturing overhead allocated to Edmonton's
S3-7 Continuation of S3-6: compute total allocated overhead (Learning Objective 3) Use your answers from S3-6 to determine the total manufacturing overhead allocated to Edmonton's manufacturing jobs in the following independent situations: 1. Assume that the company actually used 51,700 direct labor hours. 2. Assume that the company actually incurred $1,020,000 of direct labor cost. 3. Assume that the company actually ran the machines 39,500 hours. 4. Briefly explain what you have learned about the total manufacturing overhead allo- cated to production. 1 Estimated Manufacturing Overhead costs 1400000 Divide by Estimated Direct labor hours Predetermined Manufacturing Overhead rate 28 50000 per direct labor hour 2 Estimated Manufacturing Overhead costs Divide by Estimated Direct labor cost Predetermined Manufacturing Overhead rate 140% 1400000 1000000 per S of direct labor cost 3 Estimated Manufacturing Overhead costs Divide by Estimated Machine hours 1400000 40000 Predetermined Manufacturing Overhead rate 35 per machine hour
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