Smith Foundry in Boston, Massachusetts, uses a predetermined manufacturing overhead rate to allocate overhead to individualjobs 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 beginning of year estimated costs ) Al the end of the year. the company had actually incurred the following: (Click the icon to View the actual and of year costs.) Read the m Requirement 1. Compute Smith's predetermined manufacturing overhead rate. Determine the formula to calculate the predetermined overhead rate, then calculate the rate. I \"' I = Predetermined overhead rate Requirements 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? Beginning of year estimated costs Manufacturing overhead costs ........ $ 610,000 Direct labor cost ................... $ 1,600,000 Machine hours ..................... 76,250 Actual end of year costs Direct labor cost ..................................... $ 1,220,000 Depreciation on manufacturing plant and equipment ......... $ 460,000 Property taxes on plant ................................ $ 21,000 Sales salaries ....................................... $ 24,500 Delivery drivers' wages ................................ $ 17,000 Plant janitors' wages .................................. $ 11,000 Machine hours ....................................... 56,500 hours