Artisan 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, Artisan recorded the following: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the budgeted manufacturing overhead rate. Data table Enter the formula, then enter the amounts to calculate the budgeted manufacturing overhead rate. Budgeted manufacturing overhead rate $ 4,370,000 190,000 Budgeted manufacturing overhead costs Budgeted direct labor-hours Actual manufacturing overhead costs Actual direct labor-hours . = $ 4,586,000 200,000 Requirement 2. Prepare the summary journal entry to record the allocation of manufacturing overhead. (Record debits first, then credits. Excl Journal Entry Accounts Debit Credit Print Done Requirement 3. Compute the amount of under- or overallocated manufacturing overhead. Is the amount significant enough to warrant proration of overhead costs, or should Artisan Woodworking write it off to cost of goods sold? Prepare the journal entry to dispose of the under- or overallocated overhead. Enter the formula, then enter the amounts to calculate the over- or underallocated manufacturing overhead. (Use parentheses or a minus sign to report overallocated overhead.) = Underallocated (Overallocated) Is the amount significant enough to warrant proration of overhead costs, or should Artisan Woodworking write it off to cost of goods sold? The Vis amount of difference compared to manufacturing overhead costs allocated. If the quantities of work-in-process and finished goods inventories are the difference between proration and write off to Accounts Debit Credit Requirement 3. Compute the amount of under-or overallocated manufacturing overhead. Is the amount significant enough to warrant proration of overhead costs, or should Artisan Woodworking write it off to cost of goods sold? Prepare the journal entry to dispose of the under-or overallocated overhead. Enter the formula, then enter the amounts to calculate the over- or underallocated manufacturing overhead. (Use parentheses or a minus sign to report overallocated overhead.) Underallocated (Overallocated) Is the amount significant enough to warrant proration of overhead costs, or should Artisan Woodworking write it off to cost of goods sold? The IS amount of difference compared to manufacturing overhead costs allocated. If the quantities of work-in-process and finished goods inventories are the difference between proration and write off to Cost of Goods Sold account would be compared to net income. Prepare the journal entry to dispose of the under- or overallocated overhead. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Debit Credit
