Blissful vibes Company manufactures unique furniture. The company has automated production and allocated overhead based on machine hours. Blissful vibes expects to incur $350,000 of manufacturing overhead costs and to use 50,000 machine hours during 2024. Blissful vibes had no beginning inventory. The company recorded $10,000 in actual manufacturing overhead and actually used 1,200 machine hours in Feb.

1. Calculate the Pre-determined Manufacturing Overhead Rate and allocated amount of manufacturing overhead.

2. Record the Journal Entry for allocation of overhead and the journal entry to close the under or over-allocated balance of the overhead account.