Applied vs. Actual Manufacturing Overhead Sloan Manufacturing Corporation applies manufacturing overhead on the basis of 120% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $105,000 and that at year-end Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included $15,000, $10,000, and $75,000, respectively, of direct labor incurred during the current year. a. Determine the over-applied manufacturing overhead at year-end (assume it is significant). Applied Manufacturing Overhead Work in process Finished goods Cost of goods sold $ 0 0 0 Total: $ 0 Over-applied manufacturing overhead $ 0 b. Prepare a journal entry to record the disposition of the over-applied manufacturing overhead. General Journal Description Debit Credit Finished goods inventory 0 0 0 0 0 0 0 0