White 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 over-allocated 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 overhead rate?

Transcribed Image Text:

Machine hours.. Maintenance labor (repairs to equipment).... Plant supervisor's salary..... Screws, nalls, and glue. Plant utilitles.. Freight out.. Depreciation on plant and equipment.. Estimated (Budget) Advertising expense. 25,000 hours $12,000 47,000 24,000 41,000 37,000 87,000 43,000 Actual 32,100 hours $28,500 48,000 45,000 96,850 46,500 83,000 54,000 Machine hours.. Maintenance labor (repairs to equipment).... Plant supervisor's salary..... Screws, nalls, and glue. Plant utilitles.. Freight out.. Depreciation on plant and equipment.. Estimated (Budget) Advertising expense. 25,000 hours $12,000 47,000 24,000 41,000 37,000 87,000 43,000 Actual 32,100 hours $28,500 48,000 45,000 96,850 46,500 83,000 54,000

Answer rating: 100% (QA)

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