- Requirements Data Table Estimated Actual Machine hours 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 to adjust for underallocated or overallocated overhead. 4. The predetermined overhead allocation rate usually turns out to be inaccurate. Why don't accountants just use the actual manufacturing overhead rate? 28,960 hours 32,500 hours $ 14,000 $ 27,500 45,000 46,000 Maintenance labor (repairs to equipment) Plant supervisor's salary Screws, nails, and glue Plant utilities 25,000 49,000 47,000 96,850 48,500 39,000 Freight out Depreciation on plant and equipment Advertising expense 87,200 80,000 Print Done 41,000 54,000 Print Done Sloan 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 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 Sloan 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 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 Requirement 4. The predetermined overhead allocation rate usually turns out to be inaccurate. Why don't accountants just use the actual manufacturing overhead rate? The actual manufacturing overhead rate is V. Managers need to make decisions Accountants use predetermined overhead allocation rates to give managers product cost information when they need it- V