80.2K

Verified Solution

Link Copied!

Sloan Company produces uniforms. The company allocates manufacturing overhead based on the machine hours each jab uses. Sloan Company reports the following cost data for the past year: (Click the icon to view the cost data.) Requirements 1. Compute the predetermined manufacturing overhead rate. 2. Calculate the allocated manufacturing overhead for the past year 3. Compute the underallocated or averallocated manufacturing overhead. How will this underallocated or overallocated manufacturing averhead he disposed of? 4. How can managers use accounting information to help control manufacturing overhead costs? - X Data Table Budget Actual BODO Requirement 1. Compute the predetermined manufacturing overhead rate. Enter the formule, then compute the rate. (Round your answer to the nearest whole dollar.) Estimated yearly direct labour cost Estimated yearly direct labour hours - Predetermined overhead rate 87,000 14.5 per machine hour Requirement 2. Calculate the allocated manufacturing averhead allocated for the past year. Manufacturing overhead allocated 7.200 hours 6.950 hours 6,000 hours 6,400 hours 5 23.500 52 500 $ 23,500 54,000 Direct labour hours Machine hours Depreciation on salespeople's autos Indirect materials Depreciation on trucks used to deliver uniforms a customers Depreciation on plant and equipment Indirect manufacturing Inbour Customer service hotline Plant utilities Direct labour cost 15.000 Requirement 3. Compute the underalocated or overalocated manufacturing ovetead. How will this underalocated or overallocated manufacturing overhead be disposed af? First calculate the preliminary manufacturing overhead balance using the T-account. (Enter amounts in the order they appear in the cost data. Leave any unused cells blank.) Manufacturing Overhead 12,500 86.500 41.500 22.500 20 200 71,500 68,500 43,500 27,000 23,700 87.000 Close the underallocated or overallocated overhead to cost of goods sold by journalizing the entry. (Record debits first, then credits. Explanations are not required.) Journal Entry Date Accounts Debit Credit ( Print Print Done

Answer & Explanation Solved by verified expert

See Answer