Accounting for manufacturing overhead. Jamison Woodworking uses normal costing and a...

Accounting for manufacturing overhead. Jamison Woodworking uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under- or overall located overhead, if immaterial, is written off to Cost of Goods Sold. During 2014, Jamison recorded the following:

1. Compute the budgeted manufacturing overhead rate. 2. Prepare the summary journal entry to record the allocation of manufacturing overhead. 3. Compute the amount of under- or overall located manufacturing overhead. Is the amount significant enough to warrant proration of overhead costs, or would it be permissible to write it off to cost of goods sold? Prepare the journal entry to dispose of the under- or overall located overhead.