Young's Manufacturing Plant uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on machine hours required. At the beginning of 2018, the company expected to incur the following:

Manufacturing overhead costs	$840,000
Direct labor costs	$1,480,000
Machine hours	70,000 hours

At the end of 2018, the company actually incurred:

Direct labor costs	$1,230,000
Depreciation on manufacturing equipment	$620,000
Property taxes on plant	$35,500
Sales salaries	$26,000
Delivery drivers' wages	$22,500
Plant janitor's wages	$17,000
Machine hours	60,000 hours

1. Compute Young's predetermined overhead allocation rate.
2. Prepare the journal entry to allocate manufacturing overhead.
3. Is manufacturing overhead underallocated or overallocated? By how much?
4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead.

Be sure to label each answer. If your work is not labeled, it will not be graded.