4-28. ACCOUNTING FOR MANUFACTURING OVERHEAD. Seaway Woodworking uses normal costing and allocates manufacturing overhead to jobs based on a budgeted labor-hour rate and actual direct labor-hours. Under- or overallocated overhead, if immaterial, is written off to Cost of Goods Sold. During 2020, Seaway recorded the following:

Budgeted manufacturing overhead costs $4,080,000

Budgeted direct labor-hours $170,000

Actual manufacturing overhead costs $4,261,000

Actual direct labor-hours $178,000

1. Show the T-account for MOHC and MOHA.

2. Write the journal entry to allocate OH.

3. Write the journal entry to close MOHA, MOHC, and adjust COGS.

4. Was the allocated OH under- or over-applied?