A company in the garment industry uses a Job Order Costing System. Customer orders begin in the cutting room where fabric is cut from patterns and fusible reinforcement is completed. The garments are then constructed in the sewing department, sent for pressing and finally to the quality control department. Finished garments are then packed and shipped to the customer. Overhead is allocated at the rate of $2.00 per direct labour hour based on 130,000 expected direct labour hours. Overhead applied and included in the year-end finished goods, work in process and cost of goods sold balances were $79,800, $26,600, and $159,600 respectively. Required: (each scenario below is independent of each other) (a) Prepare the required adjusting entry assuming actual direct labour hours were 135,000 and actual overhead costs were $266,000. (6 marks) (b) Prepare the required adjusting entry assuming actual direct labour hours were 135,000 and actual overhead costs were $274,000. (2 marks)