Question

Henrietta Woodworking uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under- or overallocated overhead, if immaterial, is written off to Cost of Goods Sold. During 2017, Henrietta recorded the following: (Click the icon to view the data.) Read the requirements. Requirement 1. Compute the budgeted manufacturing overhead rate. Enter the formula, then enter the amounts to calculate the budgeted manufacturing overhead rate. Budgeted manufacturing Budgeted quantity of cost-allocation base overhead rate Budgeted manufacturing overhead costs 4,410,000 210,000 21 Requirement 2. Prepare the summary journal entry to record the allocation of manufacturing overhead. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry

Answer 1

2)
Date	Account titles and Explanations	Debit	Credit
	Work-in-process Control ( 215,000 x $ 21 )	$ 4,515,000
	Manufacturing Overhead Allocated		$ 4,515,000
	(To record the allocation of Manufacturing Overhead )
3)
	Over (or) Underallocated overhead             = Actual OH costs(-) Allocated OH costs             =   $ 4,506,000 (-) $ 4,515,000	$ 9,000	Overapplied
Date	Account titles and Explanations	Debit	Credit
	Manufacturing Overhead Allocated	$ 4,515,000
	Manufacturing Overhead Control		$ 4,506,000
	Cost of Goods Sold		$ 9,000
	(To write off the manufacturing overhead )