Examine Smith Foundrys manufacturing overhead table found below.

Manufacturing overhead costs - $630,000

Direct Labor cost. - $1,650,000

Machine hours - $90,000

At the end of the year, the company had actually incurred the following:

Direct Labor cost. - $1,230,000

Depreciation on manufacturing plant - $480,000

Property taxes and plant - $19,500

Sales salaries - $26,500

Delivery drivers wages - $17,000

Plant janitors wages - $8,500

Machine hours - 56,500 hours

After examining the table, and using the data provided, prepare the calculations for the 4 major requirements that include the following: (1) Predetermined Manufacturing Rate; (2) Allocated Manufacturing Overhead, (3) Depreciation, Taxes, and Wages, and (4) Determination of over allocated or under allocated costs.

2. Compute Smiths predetermined manufacturing overhead rate.

3. Explain how much manufacturing overhead was allocated to jobs during the year.

4. Discuss how much manufacturing overhead was incurred during the year. Explain whether manufacturing overhead was underallocated or overallocated at the end of the year. If yes, explain by how much.

5. Explain if there were the jobs over costed or under costed. If they were, explain by how much.

6. Analyze Smith Foundrys current processes, and Formulate a strategy that can contribute to optimizing performance while maintaining efficiency and effectiveness