1. Data Allocation base Estimated manufacturing overhead cost Estimated total amount of the allocation base Actual manufacturing overhead cost Actual total amount of the allocation base Machine-hours $450,000 85,000 machine-hours $310,000 74,000 machine-hours Enter a formula into each of the cells marked with a 2 below ? ? machine-hours ? per machine-hour Computation of the predetermined overhead rate Estimated manufacturing overhead cost Estimated total amount of the allocation base Predetermined overhead rate 1 Computation of underapplied or overapplied manufacturing overhead Actual manufacturing overhead cost Manufacturing overhead cost applied to Work in Process during the year: Predetermined overhead rate Actual total amount of the allocation base Manufacturing overhead applied Underapplied (overapplied) manufacturing overhead ? 11 ? per machine-hour ? machine-hours ? ? ABC 2. Prepare the appropriate journal entry necessary to clear the underapplied or overapplied amount from the manufacturing account and adjust the appropriate income statement account