Weiters CompanyWeiters Company
produces uniforms. The company allocates manufacturing overhead based on the machine hours each job uses.
Weiters CompanyWeiters Company
reports the following cost data for the past? year:
Budget Actual
Direct labor hours. . . . . . . . . . . . . . . . . . . . . . . . . . 7,100 hours 6,100 hours
Machine hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,700 hours 6,400 hours
Depreciation on salespeople's autos . . . . . . . . . . . $ 20,000 $ 20,000
Indirect materials . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 51,500 $ 53,000
Depreciation on trucks used to deliver uniforms
to customers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 15,500 $ 14,000
Depreciation on plant and equipment . . . . . . . . . . . $ 69,000 $ 71,000
Indirect manufacturing labor. . . . . . . . . . . . . . . . . . . $ 41,000 $ 43,000
Customer service hotline . . . . . . . . . . . . . . . . . . . . . $ 20,000 $ 22,000
Plant utilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,400 $ 21,400
Direct labor cost. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 69,000 $ 87,000

1. Compute the predeterimned manufacturing overhead rate