4. Prepare the journal entry to a manufacturing overhead. Learning Objectives 3, 5 E19-20 Allocating and adjusting manufacturing overhead Metal Foundry uses a predetermined overhead allocation rate to allocate overhead to 1. $12 per MHr individual jobs, based on the machine hours required. At the beginning of 2016, the company expected to incur the following: Manufacturing overhead cost $ 870,000 Direct labor costs 1,450,000 Machine hours 72,500 hours At the end of 2016, the company had actually incurred: Direct labor cost $ 1, 160,000 Depreciation on manufacturing plant and equipment 610,000 Property taxes on plant 40,000 Sales salaries 27,500 Delivery drivers' wages 24,000 Plant janitor's wages 18,000 Machine hours 65,000 hours Requirements 1. Compute Metal's predetermined overhead allocation rate. 2. Prepare the journal entry to allocate manufacturing overhead. 3. Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. Is manufacturing overhead underallocated or overallocated? By how much? 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease cost of goods sold