4-28. ACCOUNTING FOR MANUFACTURING OVERHEAD. Seaway Woodworking uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under- or overallocated overhead, if immaterial, is written off to Cost of Goods Sold. During 2020, Seaway recorded the following: Budgeted manufacturing overhead costs $4,080,000 Budgeted direct labor-hours 170,000 Actual manufacturing overhead costs $4,261,000 Actual direct labor-hours 178,000