Barbicon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2012, they formulated a rate of 20% times the direct labor cost. In June, 2012, Barbicon completed the job. Information are as follows:

Direct materials cost $56,220

Direct labor cost $125.000

Units of product produced: 250 kilos

Actual overhead costs incurred:

Indirect materials $5,200

Indirect labor $3,750

Plant depreciation $4,800

Plant utilities and insurance $9,530

Requirements:

1. Compute the allocated manufacturing overhead for the year.
2. Prepare the journal entry to allocate overhead cost for the year.
3. Compute the actual overhead incurred during the period.
4. Compute total cost of the products produced (250 kilos)
5. Use a T-account to determine the amount of underallocated or overallocated manufacturing overhead.
6. Prepare the journal entry to close the balance of Manufacturing overhead account.