Martinez Foundry in Austin, Texas, 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 Martinez's predetermined manufacturing overhead rate. Determine the formula to calculate the predetermined overhead rate, then calculate the rate. Estimated yearly overhead costs Estimated yearly machine hours = Predetermined overhead rate $ 590,000 73,750 8 per machine hour Requirement 2. How much manufacturing overhead was allocated to jobs during the year? Determine the formula to calculate the overhead to be allocated, then calculate the manufacturing overhead allocated. Manufacturing overhead allocated Data Table i Requirements $ 590,000 Manufacturing overhead costs Direct labor cost. $ 1,350,000 73,750 1. Compute Martinez'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? Machine hours. At the end of the year, the company had actually incurred the following: Direct labor cost ... $ 1,230,000 $ Print Done Depreciation on manufacturing plant and equipment ... Property taxes on plant Sales salaries. $ 465,000 19,000 23,000 $ $ 14,500 Delivery drivers' wages. Plant janitors' wages. Machine hours.. $ 12,000 heck Answer 55,500 hours