E3-25A (similar to) EQuestion Holp Metal Foundry in Boston, Massachusetts, uses a predetermined manufacturing overhead rate to allocate overhead to individual jobs based on the machine hours required. At the beginning of the year, the company expected to incur the following EEB (Click the ioon to view the costs.) Requirements 1. Compute Metars predetermined manufacturing overhead rate 2. How much manufacturing overhead was allocated to jobs during the year? 3. How mu manufacturing overhead was incurred during the year? ls manufacturing overhead unde al ocated or overallocated at the end of he year? By how much? 4. Were the jobs overcosted or undercosted? By how much? Requirement 1. Compute Metals predetermined manufacturing overhead rate. Data Table Determine the formula to calculate the predetermined overhead rate, then calculate the rate. Manufacturing overhead costs Direct labor cost Machine hours S 630,000 S 1,350,000 90,000 At the end of the year, tha company had acually incurred the folowing: Direct labor cost 1,220,000 Depreciation on manufacturing plant and 470,000 21.000 26,000 16,000 9,000 equipment Property taxes on plant Sales salaries Dolivery drivers wages Plant janitors'wages Machine hours. 53,500 hours Print Done