Premium Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Premium Company 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.) 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 V with the budgeted amounts. Managers will also investigate only differences between actual and budgeted amounts to identify the reasons why actual costs Budget Actual Direct labar.hours. Machine hours Depreciation on salespeople's autos Indirect materials Depreciation on trucks used to deliver uniforms to customers. Depreciation on plant and equipment Indirect manufacturing labor Customer service hotline 7,400 hours 6,000 hours 6,400 hours 6,400 hours $ 21,500 $ 21,500 $ 49,500 $ 51,500 $ 15,500 $ 14,000 $ 67,000 $ 68,500 $ 40,500 $ 42,500 $ 22,000 $ 24,500 Plant utilities $ 35,000 $ 36,500 Direct labor cost $ 69,000 $ 86,000 Actual customer service hotline Actual depreciation on delivery trucks Actual depreciation on plant and equipment Actual depreciation on salespeople's autos Actual direct labor cost Actual indirect manufacturing labor Actual indirect materials Actual plant utilities Budget customer service hotline Budget depreciation on delivery trucks Budget depreciation on plant and equipment Budget depreciation on salespeople's autos Budget direct labor cost Budget indirect manufacturing labor Budget indirect materials Budget plant utilities Manufacturing overhead allocated