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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 7,600 hours 6,100 hours Direct labor 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 oolisisbnu $13,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $70,000 $40,000uero $42,000 $19,000 $72,500 Customer service hotline $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements Obod 1odsl to 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? C 4. How can managers use accounting intormation to help control manufacturing over- head costs?

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 7,600 hours 6,100 hours Direct labor 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 oolisisbnu $13,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $70,000 $40,000uero $42,000 $19,000 $72,500 Customer service hotline $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements Obod 1odsl to 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? C 4. How can managers use accounting intormation to help control manufacturing over- head costs?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer subpart 4 (Requirement 4).

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 7,600 hours 6,100 hours Direct labor 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 oolisisbnu $13,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $70,000 $40,000uero $42,000 $19,000 $72,500 Customer service hotline $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements Obod 1odsl to 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? C 4. How can managers use accounting intormation to help control manufacturing over- head costs?
Transcribed Image Text: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 7,600 hours 6,100 hours Direct labor 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 oolisisbnu $13,000 $11,000 Depreciation on plant and equipment Indirect manufacturing labor $70,000 $40,000uero $42,000 $19,000 $72,500 Customer service hotline $21,000 Plant utilities $35,900 $38,400 Direct labor cost $72,500 $85,500 Requirements Obod 1odsl to 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? C 4. How can managers use accounting intormation to help control manufacturing over- head costs?
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