Regal Company produces hospital uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.

Regal reports the following cost data for 2009:

Requirements 

1. Compute the predetermined manufacturing overhead rate.

2. Post actual and allocated manufacturing overhead to the Manufacturing Overhead T-account.

3. Close the under- or overallocated overhead to Cost of Goods Sold.

4. How can managers use accounting information to help control manufacturing overhead costs? 

Transcribed Image Text:

Budget Actual Machine hours......... 7,000 hours 6,500 hours Indirect materials.... 50,000 52,000 Depreciation on trucks used to deliver uniforms to customers....... 14,000 12,000 Depreciation on plant and equipment 65,000 67,000 Indirect manufacturing labor 40,000 43,000 Customer service hotline...... 19,000 21,000 Plant utilities.......... 27,000 20,000