Accounting for manufacturing overhead. Consider the following selected cost data for the Hamilton Forging Company for 2007.

Budgeted manufacturing overhead Budgeted machine-hours Actual manufacturing overhead ending balance Actual machine-hours

$8,400,000 200,000

$8,160,000 195,000 Hamilton’s job-costing system has a single manufacturing overhead cost pool (allocated using a budgeted rate based on actual machine-hours). Any amount of under- or overallocation is immediately written offto cost of goods sold.

Required 1. Compute the budgeted manufacturing overhead rate.

2. Journalize the allocation of manufacturing overhead.

3. Compute the amount of under- or overallocation of manufacturing overhead. Is the amount significant? Journalize the disposition of this amount based on the ending bal¬

ances in the relevant accounts.