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Annabelles Uniforms produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses. Annabelle's Uniforms reports the following cost data for the past year: Budget Actual 6,500 hours Direct labor hours.......................... ......... Machine hours 7,600 hours 6,900 hours $24,000 $49,000 6,900 hours $24,000 Depreciation on salespeople's autos ............... Indirect materials $53,500 Depreciation on trucks used to deliver uniforms to customers ......................... $13,000 $11,500 $65,500 $67,000 Depreciation on plant and equipment .......... Indirect manufacturing labor........................ Customer service hotline .................................... $43500 $20,500 $46500 $22,500 Plant utilities....................................................... $28,300 $29,300 Direct labor cost ............................... $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 over head costs

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