Superior Woods manufactures jewelry boxes. The primary materials (wood, brass, and glass) and direct labor are traced directly to the products. Manufacturing overhead costs are allocated based on machine hours. Data for 2012 follow:

Requirements
1. Compute the predetermined manufacturing overhead rate.
2. Post actual and allocated manufacturing overhead to the Manufacturing overhead T-account.
3. Close the under- or overallocated overhead to Cost of goods sold.
4. The predetermined manufacturing overhead rate usually turns out to be inaccurate. Why don€™t accountants just use the actual manufacturing overheadrate?

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Estimated (Budget) Actual 28,000 hours $16,000 Machine hours 32,400 hours Maintenance labor (repairs to equipment) Plant supervisor's salary Screws, nails, and glue $26,500 46,000 47,000 23,000 46,000 Plant utilities 42,000 93,850 Freight out Depreciation on plant and equipment Advertising expense 35,000 47,500 83,000 82,000 46,000 59,000