Applied vs Actual Manufacturing Overhead (10 points). Iwavik Manufacturing Corporation applies manufacturing overhead based on direct labor cost at rate of 50%. During the year total manufacturing overhead incurred was $525,000. At the end of the year, Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $150,000, $250,000, and $600,000, respectively, of direct labor incurred during the current year. a. Is overheard under-applied or over-applied and by what amount? b. Is Cost of Goods Sold overestimated or underestimated? Is Net Income overestimated or underestimated? d. Prepare the journal entry to record the disposition of the over or under application of manufacturing overhead, assume the amount is considered insignificant: Debit Credit e. Prepare the journal entry to record the disposition of the over or under application of manufacturing overhead, assume the amount is considered significant: Debit Credit