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Superior Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Superior Uniforms reports the following cost data
Superior Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Superior 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. Data table = Predetermined overhead rate Budget Actual Direct labor hours... Machine hours.... 7,300 hours 6,000 hours 7,200 hours 6,300 hours Depreciation on salespeople's autos.. 23,500 $ 23,500 Indirect materials ..... $ 49,000 $ 53,000 Depreciation on trucks used to deliver uniforms to customers $ 12,000 $ 9,500 Depreciation on plant and equipment... 65,500 $ 68,000 Indirect manufacturing labor..... 43,000 $ 44,000 Customer service hotline.... 21,000 $ 23,500 Plant utilities... Direct labor cost... 51,300 $ 53,300 69,500 $ 86,500 Requirements 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year. 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? 4. How can managers use accounting information to help control manufacturing overhead costs? Print Done -
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