rolling stone Company manufactures baby walkers. The company has automated production and allocated overhead based on machine hours. stones expecrs to incur $72,000 of manufacturing overhead costs and to use 6,000 machine hours during 2023. stones had no beginning inventory. It recorded the following transactions during January.

1. Purchased direct materials (on account) for $31,000

2. Purchased indirect materials (on account) for $19,000

3. Incurred other manufacturing overhead cost (on account) for $7,000

4. Used direct materials - $25,000

5. Incurred direct labor costs- $53,000

6. Used $8,000 of indirect materials (that was purchased in #2)

7. Allocated manufacturing overhead for January

The company actually used 475 machine hours in January.

a. Calculate the Pre-determined Manufacturing Overhead Rate.

b. Record the Journal Entry for allocation of overhead and the journal entry to close the under or over-allocated balance of the overhead account.