Michael Scott Paper Co. uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required. At the beginning of 2020, the company expected to incur the following: Michael Scott Paper Co.Beginning of 2020 Manufacturing overhead costs $1,001,910 Direct labor costs $1,512,800 Number of Machine hours to be used 73,400   At the end of 2020, the company had actually incurred: Michael Scott Paper Co.End of 2020 Direct labor costs $1,219,700 Depreciation on manufacturing plant equipment $596,400 Property taxes on plant $39,600 Sales Salaries $28,400 Delivery drivers wages $25,600 Plant janitor's wages $17,100 Number of Machine hours actually used 65,700   (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the predetermined overhead allocation rate. Total estimated overhead cost ? Total estimated quantity of the overhead allocation base = Predetermined Overhead Allocation Rate       =   2. Prepare the journal entry to allocate overhead costs. Journal Date Description Debit Credit                 3. Use the T-account to determine if the amount is underallocated or overallocated manufacturing overhead. Manufacturing Overhead Debit Credit             Double line Double line 4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead. Journal Date Description Debit Credit

Michael Scott Paper Co. uses a predetermined overhead allocation rate to allocate overhead to individual jobs, based on the machine hours required.

At the beginning of 2020, the company expected to incur the following:

Michael Scott Paper Co.Beginning of 2020

Manufacturing overhead costs	$1,001,910
Direct labor costs	$1,512,800
Number of Machine hours to be used	73,400

 

At the end of 2020, the company had actually incurred:

Michael Scott Paper Co.End of 2020

Direct labor costs	$1,219,700
Depreciation on manufacturing plant equipment	$596,400
Property taxes on plant	$39,600
Sales Salaries	$28,400
Delivery drivers wages	$25,600
Plant janitor's wages	$17,100
Number of Machine hours actually used	65,700

 

(Round your answers to two decimal places when needed and use rounded answers for all future calculations).

1. Compute the predetermined overhead allocation rate.

Total estimated overhead cost	?	Total estimated quantity of the overhead allocation base	=	Predetermined Overhead Allocation Rate
			=

2. Prepare the journal entry to allocate overhead costs.

Journal

Date	Description	Debit	Credit

3. Use the T-account to determine if the amount is underallocated or overallocated manufacturing overhead.

Manufacturing Overhead

Debit	Credit
Double line	Double line

4. Prepare the journal entry to adjust for the underallocated or overallocated manufacturing overhead.

Journal

Date	Description	Debit	Credit