Young Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. (Click the icon to view the costs.) Read the requirements. Requirement 1. Compute Young's predetermined overhead allocation rate. Estimated overhead cost $ 840,000 Predetermined overhead Estimated machine hours 70,000 allocation rate $ 12 per machine hour Requirement 2. Prepare the journal entry to allocate manufacturing overhead. (Record debits first, then credits. Exclude explanations from any journal Date Dec. 31 Work-in-Process Inventory Accounts Manufacturing Overhead Debit Credit 720,000 720,000 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 Data table At the beginning of 2018, the company expected to incur the following: Manufacturing overhead costs Direct labor costs Machine hours $840,000 1,480,000 70,000 hours At the end of 2018, the company had actually incurred: Direct labor costs Depreciation on manufacturing plant and equipment Property taxes on plant $1,230,000 al Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours e.) 620,000 35,500 26,000 22,500 17,000 60,000 hours Requirements 1. Compute Young's predetermined overhead allocation rate. Prepare the journal entry to allocate manufacturing overhead. 2. 3. Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. Is manufacturing overhead underallocated or overallocated? By how much? 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease Cost of Goods Sold? Print Done Check answer