Annabelle€™s Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Annabelle€™s Uniforms 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 underallocated or overallocated manufacturing overhead be disposed of?
4. How can managers use accounting information to help control manufacturing over-headcosts?

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Budget Actual Direct labor hours.. Machine hours Depreciation on salespeople's autos Indirect materials Depreciation on trucks used to 7,600 hours 6,500 hours 6,900 hours $24,000 $53,500 6,900 hours $24,000 $49,000 deliver uniforms to customers. Depreciation on plant and equipment.. Indirect manufacturing labor Customer service hotine Plant utilities. Direct labor cost $13,000 $65,500 $43,500 $20,500 $28,300 $71,000 11,500 $67,000 $46,500 $22,500 $29,300 $85,000