Accounting for manufacturing overhead Prestige woods manufactures jewelry boxes. the primary materials (wood, brass, and glass) and direct labor are...

Accounting for manufacturing overhead Prestige 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 follows:

Estimated Actual

Machine hours 27,000 hours 32,100 hours

Maintenance labor(repairs to equipment)$17,000$23,500

plant supervisors salary 48,00050,000

Screws, nails, and glue 28,00045,000

Plant utilities 44,00092,850

Freight out37,00049,500

Depreciation on plant and equipment85,40083,000

advertising expense 46,00053,000

Requirements.

1. Compute the predetermined overhead allocation rate. Round to two decimal places.
2. Post actual and allocated manufacturing overhead to the manufacturing overhead T-account.
3. Prepare the journal entry for underallocated or overallocated overhead.
4. The predetermined overhead allocation rate usually turns out to be inaccurate .Why don't accountants just use the manufacturing overhead rate?