Brooks Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.

Question content area bottom Part 1 Requirement 1. Compute predetermined overhead allocation rate. Predetermined overhead Estimated overhead cost Estimated machine hours = allocation rate $880,000 80,000 = $11 per machine hour

Part 2 Requirement 2. Prepare the journal entry to allocate manufacturing overhead. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Manufacturing Overhead Wages Payable

At the beginning of

2024,

the company expected to incur the following:

Manufacturing overhead costs	$880,000
Direct labor costs	1,510,000
Machine hours	80,000 hours

At the end of

2024,

the company had actually incurred:

Direct labor costs	$1,190,000
Depreciation on manufacturing plant and equipment	600,000
Property taxes on plant	40,000
Sales salaries	29,500
Delivery drivers' wages	23,000
Plant janitor's wages	23,000
Machine hours	69,000 hours

Requirements:

1.Compute Brooks' 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?