White Company manufactures jewelry boxes. The primary materials $($wood$,$ brass, and glass$)$ and direct labor are assigned directly to the products. Manufacturing overhead costs are allocated based on machine hours. Data for the year follow:

View the cost data.

Read the requirements.

Requirement $1.$ Compute the predetermined overhead allocation rate. Round to two decimal places.

Predetermined overhead

Predetermined overhead

$1+1=$ allocation rate

per machine hour

Requirement $2.$ Post actual and allocated manufacturing overhead to the Manufacturing Overhead T$-$account. $($Enter the ending balance on the last line.$)$

Manufacturing Overhead

Requirements

Cost data

Compute the predetermined overhead allocation rate. Round to two decimal places.

Post actual and allocated manufacturing overhead to the Manufacturing Overhead T$-$account.

Prepare the journal entry to adjust for underallocated or overallocated overhead.

The predetermined overhead allocation rate usually turns out to be inaccurate, requiring the Manufacturing Overhead account to be adjusted at the end of the accounting period. Why don't accountants just use the actual manufacturing overhead rate?

$\backslash$table$[[,,$Estimated,Actual$],[$Machine hours,,$28,960$ hours,$32,800$ hours$],[$Maintenance labor $($repairs to equipment$),$$$,14,000$$$,24,500],[$Plant supervisor's salary,,$45,000,48,000],[$Screws$,$ nails, and glue,,$25,000,49,000],[$Plant utilities,,$47,000,90,850],[$Freight out,,$34,000,45,500],[$Depreciation on plant and equipment,,$87,200,86,000],[$Advertising expense,,$44,000,56,000]]$