produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.

Sloan CompanySloan Company

reports the following cost data for the past year:

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(Click the icon to view the cost data.)Read the requirements

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.

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

=

Predetermined overhead rate

$163,300

/

7,100

=

$23

per machine hour

Requirement 2. Calculate the allocated manufacturing overhead for the past year.

						Manufacturing
	Predetermined overhead rate	x	Actual machine hours		=	overhead allocated
	23	x	$6400		=	$147,200

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

Choose from any list or enter any number in the input fields and then click Check Answer.

Data Table Budget Actual Direct labor hours 7,300 hours 6,200 hours 7,100 hours 6,400 hours $ 22,500 $ 22,500 $ 51,500 $ 53,000 Depreciation on trucks used to deliver uniforms $ 12,500 $ 64,000 $ 42,000 $ 19,500 $ 5,800 $ 72,000 $ 10,000 $66,000 $ 45,000 $ 21,500 $ 6,800 $ 87,000 to customers Customer service hotline Print Done Data Table Budget Actual Direct labor hours 7,300 hours 6,200 hours 7,100 hours 6,400 hours $ 22,500 $ 22,500 $ 51,500 $ 53,000 Depreciation on trucks used to deliver uniforms $ 12,500 $ 64,000 $ 42,000 $ 19,500 $ 5,800 $ 72,000 $ 10,000 $66,000 $ 45,000 $ 21,500 $ 6,800 $ 87,000 to customers Customer service hotline Print Done