Custom uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Custom uniforms reports the following cost data for the past year. 1) Compute the predetermined manufacturing overhead rate. 2) Calculate the allocated manufacturing overhead for the past year. 3) Compute the underllocated or overllocated manufacturing overhead. How will this underllocated or overllocated manufacturing overhead be disposed of? 4) How can managers use accounting information to help control manufacturing overhead costs?

Direct labor hours. 7.400 hours 6,200 hours Machine hours . . .. 6,800 hours 6,600 hours Depreciation on salespeople's autos . . . . $ 22,000 $ 22,000 Indirect materials . .. $ 48,000 $ 52,000 Depreciation on trucks used to deliver uniforms to customers $ 14,500 $ 12,500 Depreciation on plant and equipment . .. $ 65,000 $ 66,000 Indirect manufacturing labor. ... . $ 39,500 $ 41,500 Customer service hotline . ... $ 20,500 $ 22,000 Plant utilities. . . $ 37,900 $ 39,400 Direct labor cost. $ 72,500 $ 85,000