Placer Company incurred actual manufacturing overhead costs of \($260,000\) during the year ended December 31, 2009. A total of \($350,000\) in overhead was applied to jobs. At December 31, 2009, Work in Process Inventory totals \($100,000,\) and Finished Goods Inventory totals \($300,000.\) Cost of Goods Sold before adjustments totals \($600,000\) for the year.

Required

a. Is overhead underapplied or overapplied?

b. Close the Manufacturing Overhead account, assuming the balance is immaterial.

c. Close the Manufacturing Overhead account, assuming the amount is material.