ing manufacturing overhead [15-20 min] Brooks Foundry uses a predetermined manufacturing overhead rate to allocate over- head to individual jobs, based on the machine hours required. At the beginning of 2012, the company expected to incur the following: Manufacturing overhead costs...... $ 840,000 Direct labor costs... Machine hours 1,550,000 70,000 hours At the end of 2012, the company had actually incurred: Requirements Direct labor cost....... Depreciation on manufacturing property, plant, and equipment. Property taxes on plant Sales salaries...... Delivery drivers' wages. Plant janitor's wages.... Machine hours $ 1,160,000. 600,000 40,000 26,500 23,500 17,000 67,000 hours 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 goods sold?