A Company uses a job-order costing system in which overhead is applied to jobs based on machine hours. For the current year, the company estimated that it would work 45,000 machine hours and incur $135,000 in total manufacturing overhead costs. During the first year of operations, they had the following selected transactions: a. Purchased materials for $255,000 on account b. Total labour wages of $800,000 were incurred. Of this amount, $720,000 was for 36,000 hours of direct labour and the remainder was for indirect labour. c. Insurance costs were incurred and paid in cash: $25,000 in the factory and $5,200 in the administrative office. d. Direct materials used were $208,000. Indirect materials used were $40,000 e. Overhead was applied. The company recorded 48,000 machine hours for the year f. All of the jobs were completed and transferred. Required: 1. Prepare journal entries to record the above events. (18 marks) (Identify each journal entry by letter in the date column.) 2. Calculate the balance in the manufacturing overhead account, and label it as eithern underapplied or overapplied (3 marks)