Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $288,000 and machine hours to be 14,400. Actual manufacturing overhead and machine hours were $335,000 and 15,400, respectively.

Prepare the journal entries for overhead:

1)Record the application of manufacturing overhead to production.

2)Record the transfer of manufacturing overhead account balance to cost of goods sold.