Compute the predetermined manufacturing overhead rate. Calculate the allocated manufacturing overhead for the past year. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? How can managers use accounting information to help control manufacturing overhead costs? Data table Direct labor hours... Budget Actual 7,100 hours 6,200 hours Machine hours. . 6,600 hours 6,400 hours Depreciation on salespeople's autos . $ 21,500 $ 21,500 Indirect materials. . . $ 51,500 $ 52,000 Depreciation on trucks used to deliver uniforms to customers $ 12,000 $ 11,000 Depreciation on plant and equipment.. $ 64,000 $ 65,000 Indirect manufacturing labor.. $ 39,500 $ 41,500 Customer service hotline.. $ 21,500 $ 23,500 Plant utilities... Direct labor cost. $ 23,200 $ 25,200 69,000 $ 86,500 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: Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate. Estimated yearly overhead costs Estimated yearly machine hours 6,600 = Predetermined overhead rate = per machine hour Requirement 2. Calculate the allocated manufacturing overhead for the past year. Actual machine hours Predetermined overhead rate 64,000 = 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 Actual indirect materials 52,000 Manufacturing overhead allocated Actual indirect manufacturing labor 41,500 Actual depreciation on plant and equipment 65,000 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: Actual indirect manufacturing labor Actual depreciation on plant and equipment Actual plant utilities End Bal 41,500 65,000 25,200 ... 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 Cost of Goods Sold Manufacturing Overhead 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 manufacturing overhead budgeted amounts to identify the reasons why actual costs differ from planned or budgeted costs with the budgeted amounts. Managers will also investigate only large differences between actual and