Patel Foundry uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.

$($Click the icon to view the costs.$)$

Requirements

Compute Patel's predetermined overhead allocation rate.

Prepare the journal entry to allocate manufacturing overhead.

Post the manufacturing overhead transactions to the Manufacturing Overhead T$-$account. Is manufacturing overhead underallocated or overallocated? By how much?

Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Does your entry increase or decrease cost of goods sold?

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w the costs Data table At the beginning of 2016, the company expected to incur the following: Manufacturing overhead costs $ 840,000 Direct labor costs 1,440,000 70,000 hours Machine hours At the end of 2016, the company had actually incurred: Direct labor cost Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours Print Done $ 1,230,000 580,000 31,850 28,000 22,500 21,000 61,000 hours - w the costs Data table At the beginning of 2016, the company expected to incur the following: Manufacturing overhead costs $ 840,000 Direct labor costs 1,440,000 70,000 hours Machine hours At the end of 2016, the company had actually incurred: Direct labor cost Depreciation on manufacturing plant and equipment Property taxes on plant Sales salaries Delivery drivers' wages Plant janitor's wages Machine hours Print Done $ 1,230,000 580,000 31,850 28,000 22,500 21,000 61,000 hours -