E17-19 3 (4) Allocating manufacturing overhead [15-20 min] Brooks Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs, based on the machine hours required. At the beginning of 2012, the company expected to incur the following: Manufacturing overhead costs dots dots dots $840,000 Direct labor costs dots dots dots dots dots dots 1,550,000 Machine hours dots dots dots dots dots dots 70,000 hours At the end of 2012, the company had actually incurred: Direct labor cost dots dots dots dots dots dots dots dots dots,$,dots 1,160,000 Depreciation on manufacturing property, plant, and equipment dots dots dots dots dots dots dots dots 600,000 Property taxes on plant dots 40,000 Sales salaries. dots dots dots dots dots

E17,19 34 Allocating manufacturing overhead [15-20 min] Brooks Foundry uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs, based on the machine hours required. At the beginning of 2012, the company expected to incur the following: At the end of 2012, the company had actually incurred: Requirements 1. Compute Brooks' predetermined manufacturing overhead 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. Close the Manufacturing overhead account to Cost of goods sold. Does your entry increase or decrease cost of ooode oold