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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
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: (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. Estimated yearly overhead costs $ 194,400 Estimated yearly machine hours 7,200 = Requirement 2. Calculate the allocated manufacturing overhead for the past year. Actual machine hours 6,300 Predetermined overhead rate $ 27 Predetermined overhead rate $ 27 per machine hour Manufacturing overhead allocated $ 170,100 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 Data table Direct labor hours. Budget 7,600 hours Actual 6,100 hours Machine hours. 7,200 hours 6,300 hours Depreciation on salespeople's autos 23,000 $ 23,000 Indirect materials.. $ 48,500 $ 50,500 Depreciation on trucks used to deliver uniforms to customers $ 13,000 $ 11,000 Depreciation on plant and equipment. $ 70,000 $ 72,500 Indirect manufacturing labor.. $ 40,000 $ 42,000 Customer service hotline.. $ 19,000 $ 21,000 Plant utilities . . . . $ 35,900 $ 38,400 Direct labor cost.. 72,500 $ 85,500 Print Done
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