Suit Up produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Suit Up reports the following cost data for the past year:

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 under- allocated or overallocated manufacturing overhead be disposed of?
4. How can managers use accounting information to help control manufacturing overhead costs?

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Budget Actual Direct labour hours Machine hours 7,000 hours 6,920 hours S22,000 50,000 6,200 hours 6,400 hours $22,000 52,000 Depreciation on salespeople's autos. Indirect materials Depreciation on trucks used to deliver uniforms to customers Depreciation on plant and equipment... Indirect manufacturing labour Customer service hotline Plant utilities Direct labour co 14,000 65,000 40,000 19,000 18,000 70,000 12,000 67,000 43,000 21,000 20,000 85,000