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