Sloan Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Sloan Company 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?

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Budget Actual Direct labor hours 7,600 hours 6,100 hours Machine hours 7,000 hours 6,500 hours $23,000 $23,000 Depreciation on salespeople's autos Indirect materials . $50,500 $54,000 Depreciation on trucks used to deliver uniforms to customers $16,000 $15,000 $68,000 $69,000 Depreciation on plant and equipment Indirect manufacturing labor. $39,500 $42,500 $21,500 $22,500 Customer service hotline $38,000 $40,500 Plant utilities Direct labor cost $72,500 $86,500