Allocating and adjusting manufacturing overhead The manufacturing records for Sporty Kayaks at the end of the 2018 fiscal year show the following information about manufacturing overhead: Requirements 1. How many machine hours did Sporty Kayaks use in 2018? 2. Was manufacturing overhead overallocated or underallocated for the year and by how much? 3. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Overhead allocated to production Actual manufacturing overhead costs Predetermined overhead allocation rate $ 409,200 432,000 $ 44 per machine hour