Manufacturing overhead costs ...... $ 580,000 Direct labor cost $ 1,600,000 Machine hours.. 72,500 At the end of the year, the company had actually incurred the following: Direct labor cost ... $ 1,180,000 Depreciation on manufacturing plant and equipment .$ 490,000 Property taxes on plant 18,500 Sales salaries $ 24,500 Delivery drivers' wages. 16,500 Plant janitors' wages. $ 9,000 Machine hours.... 56,000 hours $ $ 1. Compute Smith's predetermined manufacturing overhead rate. 2. How much manufacturing overhead was allocated to jobs during the year? 3. How much manufacturing overhead was incurred during the year? Is manufacturing overhead underallocated or overallocated at the end of the year? By how much? 4. Were the jobs overcosted or undercosted? By how much? Smith Foundry in Charleston, South Carolina, 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: (Click the icon to view the costs.) Read the requirements ... Requirement 1. Compute Smith's predetermined manufacturing overhead rate. Determine the formula to calculate the predetermined overhead rate, then calculate the rate. Predetermined overhead rate Estimated yearly direct labor cost Estimated yearly direct labor hours Estimated yearly machine hours Estimated yearly overhead costs