Adam Industries manufactures wooden backyard playground equipment. Adam estimated $ 1,800,000 of manufacturing overhead and $ 2,000,000 of direct labor cost for the year. After the year was over, the accounting records indicated that the company had actually incurred $ 1,660, 000 of manufacturing overhead and $ 2,650,000 of direct labor cost.
1. Calculate Joseph's predetermined manufacturing overhead rate, assuming that the company uses direct labor costs as an allocation base. (Round the percentage to the nearest hundredth percent, X. XX.)
2. How much manufacturing overhead would have been allocated to manufacturing jobs during the year? (Enter the percentage to the nearest hundredth percent, X. xx.)
3. At year-end, was manufacturing overhead overallocated or underallocated? By how much? Complete the T-account to determine the ending balance of manufacturing overhead. (Enter the ending balance on the last line of the T-account.)