Custom Woods 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 2018 follow: EEB(Click the icon to view the cost data.) Read the reguirements Requirement Compule the predetermined overhead allocation rate, Round two decimal places. Predetermined overhead Actual overhead cost Estimated machine hours allocation rate per machine hour the Manufacturing Overhead T-account. (Enter the ending balance on the last line.) Requirement Post actual and allocated manufacturing overhead Manufacturing Overhead oadjust for underallocated or overallocated overhead. (Record debits first, then credits. Exclude explanations from any joumal entries.) Requirement 3. Prepare the journal entry Date Accounts Debit Credit Dec. 31 Requirement 4. The predetermined overhead allocation rate usually turns out to be inaccurate. Why don't accountants just use the actual manufacturing overhead rate? Accountants use predetermined overhead allocation rates to give managers product cost The actual manufacturing overhead rate is Managers need to make decisions information when they need it- Data Table 1 Estimated Actual Machine hours 25,000 hours 32,400 hours Maintenance labor (repairs to equipment) $ 24,500 16,000 Plant supervisor's salary 48,000 47,000 27,000 Screws, nails, and glue 42,000 96,850 Plant utilities 45,000 45,500 35,000 Freight out 86,000 Depreciation on plant and equipment 89,000 Advertising expense 40,000 56,000 Print Done