Smith Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.

Requirement 1. Compute Smith's predetermined overhead allocation rate. Predetermined overhead allocation rate + + = per machine hour Requirement 2. Prepare the journal entry to allocate manufacturing overhead. (Record debits first, then credits. Select the explanation on the last line of the Credit Date Accounts and Explanation Debit Dec. 31 Requirement 3. Post the manufacturing overhead transactions to the T-account and calculate the balance. (Enter the ending balance on the last line.) Manufacturing Overhead Is manufacturing overhead underallocated or overallocated? By how much? Manufacturing overhead is by Data table At the beginning of 2024, the company expected to incur the following: Manufacturing overhead costs $900,000 Direct labor costs 1,490,000 Machine hours 75,000 hours At the end of 2024, the company had actually incurred: Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours Print Done $1,210,000 590,000 36,500 25,000 23,500 24,000 66,000 hours X Requirement 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease cost of goods sold? (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31 Does your entry increase or decrease Cost of Goods Sold? This entry Cost of Goods Sold