Chapter 19, Problem E19.21E

To determine

Predetermined Overhead Allocation Rate: A predetermined overhead allocation rate is used to assign the indirect manufacturing overhead costs to the units of production. It is computed by dividing the (estimated) allocated overhead by an allocation base.

Allocation Base: An allocation base is used to allocate the indirect overhead costs. For example: Labor hours, machine hours etc.

1.

Machine hours that Sporty Kayaks used in 2018.

To determine

2.

Whether manufacturing overhead over-allocated or under-allocated for the year, and by how much.

To determine

3.

To Prepare: The Journal Entry to adjust the under-allocated or over-allocated manufacturing overhead.