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 E (Click the icon to view the cost data.) Read the requirements. Data table Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate Budget Actu Estimated yoarly overhead costs . Estimated yearly machine hours = Predetermined overhead rate Direct labor hours... 7,600 hours 6, 100 hou $ 27 194,400 7,200 per machine hour Machine hours. 7,200 hours 6,300 hou Requirement 2. Calculate the allocated manufacturing overhead for the past year. Depreciation on salespeople's autos 23,000 S 23, . Indirect materials... ...... 48,500 $ 50, Manufacturing Depreciation on trucks used to deliver uniforms to customers .... 13,000 S 11, Actual machine hours Predetermined overhead rate overhead allocated Depreciation on plant and equipment. . 70,000 $ 72, 6,300 27 170,100 Indirect manufacturing labor... 40,000 S 42, Requirement 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? Customer service hotline. . 19,000 $ 21, Plant utilities.. Direct labor cost.. First calculate the preliminary manufacturing overhead balance using the T-account. .. 35,900 S 38, Manufacturing Overhead 72,500 S 85 Print Done
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 E (Click the icon to view the cost data.) Read the requirements. Data table Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formula for predetermined manufacturing overhead rate, then compute the rate Budget Actu Estimated yoarly overhead costs . Estimated yearly machine hours = Predetermined overhead rate Direct labor hours... 7,600 hours 6, 100 hou $ 27 194,400 7,200 per machine hour Machine hours. 7,200 hours 6,300 hou Requirement 2. Calculate the allocated manufacturing overhead for the past year. Depreciation on salespeople's autos 23,000 S 23, . Indirect materials... ...... 48,500 $ 50, Manufacturing Depreciation on trucks used to deliver uniforms to customers .... 13,000 S 11, Actual machine hours Predetermined overhead rate overhead allocated Depreciation on plant and equipment. . 70,000 $ 72, 6,300 27 170,100 Indirect manufacturing labor... 40,000 S 42, Requirement 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of? Customer service hotline. . 19,000 $ 21, Plant utilities.. Direct labor cost.. First calculate the preliminary manufacturing overhead balance using the T-account. .. 35,900 S 38, Manufacturing Overhead 72,500 S 85 Print Done
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
E (Click the icon to view the cost data.)
Read the requirements.
Data table
Requirement 1. Compute the predetermined manufacturing overhead rate.
Enter the formula for predetermined manufacturing overhead rate, then compute the rate.
Budget
Actual
Estimated yearly overhead costs
Estimated yearly machine hours
Predetermined overhead rate
Direct labor hours.
7,600 hours
6,100 hours
194,400
7,200
$
27
per machine hour
Machine hours.
7,200 hours 6,300 hours
Requirement 2. Calculate the allocated manufacturing overhead for the past year.
Depreciation on salespeople's autos
23,000 $
23,000
Indirect materials..
$
48,500 $
50,500
Manufacturing
Depreciation on trucks used to deliver uniforms to customers
$
13,000 $
11,000
Actual machine hours
Predetermined overhead rate
overhead allocated
Depreciation on plant and equipment.
70,000 $
72,500
6,300
27
$
170,100
Ind
ect manufacturing labor.
$
40,000 $
42,000
Requirement 3. Compute the underallocated or overallocated manufacturing overhead. How will this underallocated or overallocated manufacturing overhead be disposed of?
Customer service hotline.
19,000 $
21,000
First calculate the preliminary manufacturing overhead balance using the T-account.
Plant utilities.
35,900 $
38,400
Manufacturing Overhead
Direct labor cost.
72,500 $
85,500
Print
Done
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