Learning Objectives 3,5 E19-20 Allocating and adjusting manufacturing overhead Metal Foundry uses a predetermined overhead allocation rate individual jobs, based on the machine hours required. At the company expected to incur the following: on rate to allocate overhead At the beginning of 2016, E1 1. $12 per MHT $ Manufacturing overhead cost Direct labor costs Machine hours 870,000 1,450,000 72,500 hours At the end of 2016, the company had actually incurred: Direct labor cost Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours $ 1,160,000 610,000 40,000 27,500 24,000 18,000 65,000 hours Requirements 1. Compute Metal'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 bow much? 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease cost of gooon