Question
Weiters Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Weiters Company reports the following cost data
Weiters Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Weiters 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 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? Data table Budget Actual Direct labor hours. 7,100 hours 6,300 hours Machine hours. 7,000 hours 6,500 hours Depreciation on salespeople's autos 20,500 $ 20,500 Indirect materials ... 51,000 $ 54,000 Depreciation on trucks used to deliver uniforms to customers $ 12,000 $ 11,000 Depreciation on plant and equipment. . . 65,500 $ 66,500 Indirect manufacturing labor.. $ 42,000 $ 43,000 Customer service hotline. $ 22,000 $ 23,500 Plant utilities. Direct labor cost. 9,500 $ 11,000 72,500 $ 86,500
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