1. (20 points) Vandelay Industries makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 88,000 $ 1,273.000 $ 3.30 During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: 60,000 $ 942.000 Machine-hours Manufacturing overhead cost Inventories at year-end: Raw materials Work in process (includes overhead applied of 53,310) Finished goods (includes overhead applied of 248,780) Cost of goods sold includes overhead applied of 586,410) $ 420,000 $ 110,000 $ 1,050,000 $ 2,710,000 D. Record the Journal Entry to close out the underallocated or overallocated manufacturing overhead