Alba foundry uses a predetermined overhead alloction rate to allocate overhead to indiviual jobs, based on the machine hours required.

1. Compute Alba's predetermined overhead allocation rate ( formula needed)

2. Prepare the journal entry to allocate manufacturing overhead. (Debits first then credits)

3. post the manufacturing overhead transactions to the Mnufcturing 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. (debits first, then credits) Does your entry increase or decrease cost of goods sold?

At the beginning of the month, the company expected to incur the following:

Mfg. overhead costs $880,000

Direct lbor costs 1,540,000

Machine hourse 80,000 hours

At the end, these are actual results:

Direct labor $1,210,000

Deprciation on mfg. plant and equip. 530,000

Property taxes on plant 36500

Sales salaries 29500

Delivery wages 20500

plant janitors wages 24000

Machine hours 60,000 hours