Classic Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Classic Uniforms reports the following cost data for the past year: (Click the icon to view the cost data.) Read the requirements Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate. = Predetermined overhead rate per machine hour Requirement 2. Calculate the allocated manufacturing overhead 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. Manufacturing Overhead Close the under- or overallocated overhead to Cost of Goods Sold by journalizing the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Close the under- or overallocated overhead to Cost of Goods Sold by journalizing the entry. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Requirement 4. How can managers use accounting information to help control manufacturing overhead costs? with the budgeted amounts. Managers will also investigate only differences between actual and budgeted To help control manufacturing overhead, managers compare the actual line item amounts for amounts to identify the reasons why actual costs 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? Print Done Data table Budget Actual Direct labor hours. 7,100 hours 6,400 hours Machine hours. Depreciation on salespeople's autos. 7,000 hours 6,800 hours 24,000 $ 24,000 Indirect materials. 49,000 $ 51,500 12,000 $ 11,000 70,000 $ 71,500 Depreciation on trucks used to deliver uniforms to customers Depreciation on plant and equipment... Indirect manufacturing labor.. Customer service hotline 40,000 $ 19,000 $ 43,000 21,500 46,500 85,000 Plant utilities. 44,000 $ Direct labor cost. 71,500 $ Print Done