Creative 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, it immaterial, is written off to Cost of Goods Sold. During 2017, Creative recorded the following: Click the icon to view the data.) Read the requirements Requirement 1. Compute the budgeted manufacturing overhead rate Enter the formula, then enter the amounts to calculate the budgeted manufacturing overhead rate. Budgeted manufacturing overhead rate Requirement 2. Prepare the summary joumal entry to record the allocation of manufacturing overhead (Record debit first, then credits Exclude explanation from any journal entries.) Journal Entry 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 Creative Woodworking write it off to cost of goods sold? Prepare the journal entry to dispose of the under or overallocated overhead ing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under-or verallocated overhead, it immaterial, is written off to Cost of Goods Sold. During 2017, Creative recorded the following: (Click the icon to view the data.) Read the requirements Requirement 3. Compute the amount of under-or overallocated manufacturing overhead. Is the amount significant enough to warrant proration of overhead costs, or should Creative 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 underalocated manufacturing overhead (Use parentheses ot a minus sign to report overallocated overhead.) Underallocated (Overallocated) Vis Is the amount significant enough to warrant proration of overhead costs, or should Creative Woodworking write it off to cost of goods sold? The 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 Budgeted manufacturing overhead costs Budgeted direct labor-hours $ 4,140,000 180,000 $ 4,337,000 Actual manufacturing overhead costs Actual direct labor-hours 189,000