2 Applying Overhead; T-accounts; Journal Entries Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At t] Jeginning of the year, management estimated that 80,000 machine-hours would be required for the period's estimated level production. The company also estimated $128,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $0.80 per machine-hour. I Required: I 1. Compute the company's predetermined overhead rate. I 2. Assume that during the year the company works only "(5,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Manufacturing Work in Overhead Proms (Maintenance) (Direct materials} 710,000 (Indirect materials) (Dilact labor} 90.000 (Indirect labor} (Overhead) ? (Utilities) (Insurance) (Depreciation) I Copy the data in the Taccounts above onto your answer sheet. Compute the amount of overhead cost that would be appli to Work in Process for the year and make the entry in your Taccounts. I 3. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturin Overhead Taccount. Prepare a journal entry to close out the balance in this account to Cost of Goods Sold. I 4. Explain why the manufacturing overhead was underapplied or overapplied for the year