Question
Weiters CompanyWeiters Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Weiters CompanyWeiters Company reports the following cost
Weiters CompanyWeiters Company
produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.
Weiters CompanyWeiters Company
reports the following cost data for the past? year:
Budget Actual Direct labor hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,100 hours 6,100 hours Machine hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,700 hours 6,400 hours Depreciation on salespeople's autos . . . . . . . . . . . $ 20,000 $ 20,000 Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 51,500 $ 53,000 Depreciation on trucks used to deliver uniforms to customers . . . . . . . . . . . . . . . . . . . . . . . $ 15,500 $ 14,000 Depreciation on plant and equipment . . . . . . . . . . . $ 69,000 $ 71,000 Indirect manufacturing labor. . . . . . . . . . . . . . . . . . . . $ 41,000 $ 43,000 Customer service hotline . . . . . . . . . . . . . . . . . . . . . . $ 20,000 $ 22,000 Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,400 $ 21,400 Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69,000 $ 87,000
1. Compute the predeterimned manufacturing overhead rate
2. calculate the allocated manufacturing overhead for the past year
3. compute the allocated or overallocated manufacturing over head. How will this underallocated or overallocated manufcaturing overhead be disposed of
4.How can managers use accounting information to help control manufacturing overhead costs?
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