=+3 At the end of 2015, the actual manufacturing overhead costs were $2100000 in Machining and $3700000 in Assembly.

Assume that 55000 actual machine-hours were used in the Machining Department and that actual direct manufacturing labour costs in the Assembly Department were $2200000. Calculate the over- or underallocated manufacturing overhead for each department and prepare the journal entries to close the overhead accounts (write off any under- or overallocated overhead to Cost of goods sold).