3. The Stow LLC uses a job-order costing system. At the beginning of the year, the company estimated that it would incur $4,800,000 in manufacturing overhead cost at an activity level of 240,000 machine hours. The following transactions occurred in January 1) Raw materials used in production, $290,000 (80% direct materials and 20% indirect materials) 2) Labor cost accrued in the factory, $180,000 (one-third direct labor and two-thirds indirect labor). 3) Manufacturing overhead costs incurred, $37. 4) Manufacturing overhead was applied to production on the basis of 2,000 machine hours actually worked during the month. Required: 1. Prepare journal entries to record the transactions given above. 2. Compute the amount of overapplied or underapplied overhead. 3. Prepare a journal entry to close the gyerapplied or underapplied overhead to Cost of goods sold What is the impact on net income