Consider the following selected cost data for the All- In Company for 2012.

Budgeted manufacturing overhead costs …………………..            $ 4,520,000 

Budgeted labor- hours …………………..………………….                            226,000 

Actual manufacturing overhead costs………………………               $ 4,388,000 

Actual labor- hours…………………..…………………                                     217,000

The company uses normal costing. Its job- costing system has a single manufacturing overhead cost pool. Costs are allocated to jobs using a budgeted labor- hour rate. Any amount of under- or overallocation is written off to Cost of Goods Sold. 

Required

1. Compute the budgeted manufacturing overhead rate. 

2. Prepare T- accounts to record the allocation of manufacturing overhead. 

3. Compute the amount of under- or overallocation of manufacturing overhead. Is the amount large enough to require the manager to prorate overhead costs between cost of goods sold, work- in- process inventory, and finished goods inventory? Explain. Record entries in T- accounts to dispose of this amount.