Hartley uniforms produces uniforms. The company allocates manufacturing overhead
ID: 2604972 • Letter: H
Question
Hartley uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.
Hartley UniformsHartley Uniforms
reports the following cost data for the past year:
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.
Requirement 1. Compute the predetermined manufacturing overhead rate.
Enter the formula for predetermined manufacturing overhead rate, then compute the rate.
Estimated yearly overhead costs
/
Estimated yearly machine hours
=
Predetermined overhead rate
$194,400
/
7,200
=
$27
per machine hour
Requirement 2. Calculate the allocated manufacturing overhead for the past year.
Manufacturing
x
=
overhead allocated
x
=
Choose from any list or enter any number in the input fields and then click Check Answer.
3
parts remaining
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Data Table
Budget
Actual
Direct labor hours. . . . . . . . . . . . . . . . . . . . . . . .
7,600
hours
6,100
hours
Machine hours. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7,200
hours
6,300
hours
Depreciation on salespeople's autos. . . . . . . . . . . .
$23,000
$23,000
Indirect materials. . . . . . . . . . . . . . . . . . . . . . . .
$48,500
$50,500
Depreciation on trucks used to deliver uniforms
to customers. . . . . . . . . . . . . . . . . . . . . . . . . .
$13,000
$11,000
Depreciation on plant and equipment. . . . . . . . . .
$70,000
$72,500
Indirect manufacturing labor. . . . . . . . . . . . . . . . .
$40,000
$42,000
Customer service hotline. . . . . . . . . . . . . . . . . . . . . .
$19,000
$21,000
Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$35,900
$38,400
Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$72,500
$85,500
PrintDone
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 disposedof?
4.
How can managers use accounting information to help control manufacturing overhead costs?
Estimated yearly overhead costs
/
Estimated yearly machine hours
=
Predetermined overhead rate
Explanation / Answer
2. Allocated overhead :
Manufacturing
Actual hours
x
Predetermine overhead rate
=
overhead allocated
6300
x
27
=
170100
Manufacturing
Actual hours
x
Predetermine overhead rate
=
overhead allocated
6300
x
27
=
170100
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