Root Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Root Company reports the following cost data for 2008:

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 overhead costs?

Budget Actual Direct labour hours Machine hours Depreciation on salespeople's autos$21,500 Indirect materials Depreciation on trucks used to deliver 7,400 hous 6,600 hours 7,125 hours 6,800 hours $21,500 54,500 48,500 13,500 uniforms to customers Depreciation on plant and equipment Indirect manufacturing labour Cust Plant utilities Direct labour cost 63,500 40,500 18,000 18,500 72,500 11,000 65,000 42,500 20,500 19,500 84,000 omer service hotline