Reference no: EM133399937

Hartley Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses Hartley Uniforms reports the following cost data for the past year: Budget Actual Direct labor hours 7,600 hours 6,100 hours Machine hours 7,200 hours 6,300 hours Depreciation on salespeople's autos $ 23,000 $23,000 Indirect materials 48,500 $50,500 Depreciation on trucks used to deliver uniforms to customers $ 13,000 $ 11,000 Depreciation on plant and equipment. $ 70,000$ 72,500 Indirect manufacturing labor $40,000 $ 42,000 Customer service hotline $ 19,000 $21,000 Plant utilities $ 35,900 $38,400 Direct labor cost. $ 72,500 $ 85,500.

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 over- head costs?