Answered step by step
Verified Expert Solution
Question
1 Approved Answer
0 Data Table Budget Actual Direct labour hours 7,600 hours 6,200 hours Machine hours 6,950 hours 6,600 hours Depreciation on salespeople's autos $ 24,000 $
0 Data Table Budget Actual Direct labour hours 7,600 hours 6,200 hours Machine hours 6,950 hours 6,600 hours Depreciation on salespeople's autos $ 24,000 $ 24,000 Indirect materials 50,000 54,500 Depreciation on trucks used to deliver uniforms to customers 16,000 13,500 Depreciation on plant and equipment 68,500 69,500 Indirect manufacturing labour 42,000 43,000 Customer service hotline. 2,300 4,300 20,200 23,200 Plant utilities. Direct labour cost 74,500 88,000 Print Done Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Hartley Uniforms reports the following cost data for the past year: 3 (Click the icon to view the cost data.) Requirements 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers use accounting information to help control manufacturing overhead costs? Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula, then compute the rate. (Round your answer to the nearest whole dollar.) = Predetermined overhead rate per machine hour Requirement 2. Calculate the allocated manufacturing overhead allocated for the past year. Manufacturing overhead allocated Requirement 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? First, calculate the preliminary manufacturing overhead balance using the T-account. (Enter amounts in the order they appear in the cost data. Leave any unused cells blank.) Manufacturing Overhead Close the underallocated or overallocated overhead to cost of goods sold by journalizing the entry (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit Requirement 4. How can managers use accounting information to help control manufacturing overhead costs? To help control manufacturing overhead, managers compare the actual line item amounts for with the budgeted amounts. Managers will also investigate only differences between actual and budgeted amounts to identify the reasons why actual costs Choose from any list or enter any number in the innut fields and then continue to the neyt
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started