3. XYZ Corporation applies overhead based upon machine hours, Budgeted (estimated) factory overhead was $320,000 and budgeted machine-hours were 20,000. Actual factory overhead was $350,000 and actual machine-hours were 22,000. Before disposition of over- or under-applied overhead, the cost of goods sold and ending inventories were as follows: Costs of Goods Sold $ 800,000 WIP $ 215,000 Finished Goods $ 985,000 Total $ 2,000,000 Required: 1) Compute the amount of overhead applied to production 2) Prepare the journal entry to dispose of the over/under-applied overhead using the proration approach