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White Woods manufactures jewellery boxes. The primary materials (wood, brass, and glass) and direct labour are traced directly to the products. Manufacturing overhead costs are allocated based on machmachine hours. Data for 2012 follow:Estimated (Budget)ActualMachine hours . . . . . . . . . . . . . . . . . . . . . . . . . . .Maintenance labour (repairs to equipment) . . . . . .Plant supervisor’s salary . . . . . . . . . . . . . . . . . . . .Screws, nails, and glue . . . . . . . . . . . . . . . . . . . . .Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Freight out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation on plant and equipment . . . . . . . . . . . . . . . . . . . . . .Advertising expense . . . . . . . . . . . . . . . . . . . . . . .25,000 hours$12,00047,00024,00041,00037,00087,00043,00032,100 hours$28,50048,00045,00096,85046,50083,00054,000Requirements1.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?

White Woods manufactures jewellery boxes. The primary materials (wood, brass, and glass) and direct labour are traced directly to the products. Manufacturing overhead costs are allocated based on machmachine hours. Data for 2012 follow:Estimated (Budget)ActualMachine hours . . . . . . . . . . . . . . . . . . . . . . . . . . .Maintenance labour (repairs to equipment) . . . . . .Plant supervisor’s salary . . . . . . . . . . . . . . . . . . . .Screws, nails, and glue . . . . . . . . . . . . . . . . . . . . .Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Freight out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation on plant and equipment . . . . . . . . . . . . . . . . . . . . . .Advertising expense . . . . . . . . . . . . . . . . . . . . . . .25,000 hours$12,00047,00024,00041,00037,00087,00043,00032,100 hours$28,50048,00045,00096,85046,50083,00054,000Requirements1.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?

White Woods manufactures jewellery boxes. The primary materials (wood, brass, and glass) and direct labour are traced directly to the products. Manufacturing overhead costs are allocated based on machmachine hours. Data for 2012 follow:Estimated (Budget)ActualMachine hours . . . . . . . . . . . . . . . . . . . . . . . . . . .Maintenance labour (repairs to equipment) . . . . . .Plant supervisor’s salary . . . . . . . . . . . . . . . . . . . .Screws, nails, and glue . . . . . . . . . . . . . . . . . . . . .Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Freight out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation on plant and equipment . . . . . . . . . . . . . . . . . . . . . .Advertising expense . . . . . . . . . . . . . . . . . . . . . . .25,000 hours$12,00047,00024,00041,00037,00087,00043,00032,100 hours$28,50048,00045,00096,85046,50083,00054,000Requirements1.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?

White Woods manufactures jewellery boxes. The primary materials (wood, brass, and glass) and direct labour are traced directly to the products. Manufacturing overhead costs are allocated based on machmachine hours. Data for 2012 follow:Estimated (Budget)ActualMachine hours . . . . . . . . . . . . . . . . . . . . . . . . . . .Maintenance labour (repairs to equipment) . . . . . .Plant supervisor’s salary . . . . . . . . . . . . . . . . . . . .Screws, nails, and glue . . . . . . . . . . . . . . . . . . . . .Plant utilities . . . . . . . . . . . . . . . . . . . . . . . . . . . .Freight out . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Depreciation on plant and equipment . . . . . . . . . . . . . . . . . . . . . .Advertising expense . . . . . . . . . . . . . . . . . . . . . . .25,000 hours$12,00047,00024,00041,00037,00087,00043,00032,100 hours$28,50048,00045,00096,85046,50083,00054,000Requirements1.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?

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