E17-20 (similar to) Alba Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. (Click the icon to view the costs.) Read the requirements. Requirement 1. Compute Alba's predetermined overhead allocation rate. Predetermined overhead allocation rate per machine hour Data Table Requirements At the beginning of 2018, the company expected to incur the following: Manufacturing overhead costs $ 880,000 Direct labor costs 1,470,000 Machine hours 80,000 hours 1. Compute Alba's 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? At the end of 2018, the company had actually incurred: $ 1,180,000 550,000 Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours 39,500 27,500 Print Done 24,000 24,000 67,000 hours Print Done