White 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 (Click the icon to view the cost data) Read the requirements Requirement 1. Compute the predetermined overhead allocation rate. Round to two decimal places. Predetermined overhead Estimated overhead cost Estimated machine hours allocation rate per machine hour Requirement 2. Post actual and allocated manufacturing overhead to the Manufacturing Overhead T-account. (Enter the ending balance on the last line.) Manufacturing Overhead tions Requirement 3. Prepare the journal entry to adjust for underallocated or overallocated overhead. (Record debits first, then credits. Exclude explanations from any journal entries.) Date Accounts Debit Credit Dec. 31 ics ric White 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 (Click the icon to view the cost data.) - X Read the requirements. Data Table Manufacturing Overhead Estimated Actual 24,500 hours 19.000 32.700 hours $ 24,500 s Machine hours Maintenance labor (repairs to equipment) Plant supervisor's salary Screws, nails, and glue Plant utilities Freight out Depreciation on plant and equipment Advertising expense 41.000 21.000 42.000 42.000 43.000 91,850 38.000 83.800 43,000 47.500 80.000 Requirement 3. Prepare the journal entry to adjust for underallocated or overallocated overhead. (Record debits first. 54.000 Date Accounts Debit Credit Dec. 31 Print Done Requirement 4. The predetermined overhead allocation rate usually turns out to be inaccurate. Why don't accountants just use the actual manufacturing overhead rate? V. Managers need to make decisions Accountants use predetermined overhead allocation rates to give The actual manufacturing overhead rate is managers product cost information when they need it