The manufacturing records for Sporty Kayaks at the end of the 2018 fiscal year show the following information about manufacturing overhead:
Overhead allocated to production ............................... $ 409,200
Actual manufacturing overhead costs ............................. 432,000
Predetermined overhead allocation rate .......... $ 44 per machine hour
Requirements
1. How many machine hours did Sporty Kayaks use in 2018?
2. Was manufacturing overhead over allocated or under allocated for the year, and by how much?
3. Prepare the journal entry to adjust for the under allocated or over allocated manufacturing overhead?