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

 

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Premium Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Premium Company reports the following cost data for the past year: (Click the icon to view the cost data.) Direct labor hours.. Machine hours.. Depreciation on salespeople's autos. Indirect materials.... Depreciation on trucks used to deliver uniforms to customers Depreciation on plant and equipment. Indirect manufacturing labor... Customer service hotline.... Plant utilities.... Direct labor cost. Budget Actual 7,100 hours 6,100 hours 6,700 hours 6,400 hours 23,500 $ 23,500 52,000 $ 52,500 14,500 $ 12,500 66,000 $ 67,000 41,500 $ 43,500 20,500 $ 22,000 28,100 $ 29,600 71,000 $ 85,000 $ $ $ $ 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? Premium Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Premium Company reports the following cost data for the past year: (Click the icon to view the cost data.) Direct labor hours.. Machine hours.. Depreciation on salespeople's autos. Indirect materials.... Depreciation on trucks used to deliver uniforms to customers Depreciation on plant and equipment. Indirect manufacturing labor... Customer service hotline.... Plant utilities.... Direct labor cost. Budget Actual 7,100 hours 6,100 hours 6,700 hours 6,400 hours 23,500 $ 23,500 52,000 $ 52,500 14,500 $ 12,500 66,000 $ 67,000 41,500 $ 43,500 20,500 $ 22,000 28,100 $ 29,600 71,000 $ 85,000 $ $ $ $ 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?