1. The Kristopher Company uses a job-costing system at its plant. The plant has a Machining Department and an Assembly Department.Its job-costing system has two direct-cost categories (direct materials and direct manufacturing labor) and two manufacturing overhead cost pools (the Machining Department overhead, allocated to jobs based on actual machine-hours, and the Assembly Department overhead, allocated to jobs based on actual direct manufacturing labor cost). The 2018 budget for the plant is:

		Machining		Assembly
Manufacturing overhead		$1,800,000		$3,600,000
Direct manufacturing labor cost		$1,400,000		$2,000,000
Machine-hours		50,000		200,000

At the end of 2018, the actual manufacturing overhead costs were $2,100,000 in Machining and $3,700,000 in Assembly. A total of 55,000 actual machine-hours were used in Machining and total actual direct manufacturing labor costs in Assembly were $2,200,000.

Required:

1. Determine the predetermined manufacturing overhead rate for each department.
2. Calculate under or over-allocated overhead for each department.
3. Assuming that the company uses the write-off to cost of goods sold approach method, prepare the journal entries to write off the under or over-allocated overhead for each department.