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:

Requirements
1. Compute the predetermined manufacturing overhead rate.
2. Calculate the allocated manufacturing overhead for the past year.
3. Compute the under-allocated or over-allocated manufacturing overhead. How will this under-allocated or over-allocated manufacturing overhead be disposed of?
4. How can managers use accounting information to help control manufacturing overhead costs?

Transcribed Image Text:

Budget 7,600 hours Actual Direct labor hours 6,100 hours Machine hours 7,200 hours 6,300 hours $23,000 $48,500 $23,000 $50,500 Depreciation on salespeople's autos Indirect materials Depreciation on trucks used to deliver uniforms to customers .. Depreciation on plant and equipment Indirect manufacturing labor . $13,000 $70,000 $11,000 $72,500 $40,000 $19,000 $42,000 $21,000 Customer service hotline $35,900 $38,400 Plant utilities . Direct labor cost $72,500 $85,500