Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 130% of direct labor cost. An analysis of the related accounts and job order cost sheets indicates that during the year total manufacturing overhead incurred was \($210,000\) and that at year-end Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included \($30,000\), \($20,000\), and \($150,000\), respectively, of direct labor incurred during the current year.

a. Determine the manufacturing overapplied overhead at year-end (assume it is significant).

b. Prepare a journal entry to record the disposition of the overapplied overhead.