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

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.

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