4. Job order costing Applying Overhead; accounts, Journal Entries Harwood Company is a manufacturer that operates a job order costing system. Overhead costs are applied to jobs on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $380,000 in manufacturing overhead costs and work 47,500 machine hours. Required: (1) Compute the company's predetermined overhead rate. (2). Assume that during the year the company works only 45,000 machine hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Manufacturing Overhead (Maintenance) 47,000 (Indirect materials) 20,000 Work in Process +(Direct materials) 980,000 (Direct Labor 170,000 + +(Overhead) + (Indirect labore (Utilities) (Insurance) (Depreciation) 105,000 77,500 26,000- 91,5004 Copy the data in the T-accounts above onto your answer sheet Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T-accounts (3) Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. Prepare a journal entry to close out the balance in this account to Cost of Goods Sold (4). Explain why the manufacturing overhead was underapplied or overapplied for the year