Use your answers from S3-7 to determine the total over-allocation or under-allocation of manufacturing overhead during the year. Actual manufacturing costs for the year for Edmonton Pools totaled $1,425,000.

1. Assume that the company used direct labor hours as the allocation base.

2. Assume that the company used the direct labor cost as the allocation base.

3. Assume that the company used machine hours as the allocation base.

4. Were there any situations in which jobs were coasted correctly? If not, when were they over-coasted? When were they under-coasted?



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