Ch 3 Question 10 1 1 Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine hours. The predetermined overhead rate was based on a cost formula that estimates $735,000 of total manufacturing overhead for an estimated activity level of 49,000 machine-hours. During the year, a large quantly of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: 2 Machine-hours Manufacturing overhead cost Inventories at year-end: Raw materials Work in process includes overhead applied of $60.ee Finished goods includes overhead Bolted of $102.0001 Cost of goods sold includes overhead applied of 5438,000) 40,000 $ 693,000 $ 20,000 $ 185,00 $ 314,50 $1,350,500 Required: 1. Compute the underapplied or overapolled overhead 2. Assume that the company closes any underapplied or overappled overhead to Cost of Goods Sold. Prepare the appropriate journal entry 3. Assume that the company allocates any underapplied or overolled overhead proportionally to Work in Process, Finished Goods 4. How much higher or lower wil net operating come be the underappled or overappled overhead is located to work in process, Fished Goods and Cost of Goods Sold rather than being closed to cost of Goods Sold? Complete this question by entering your answers in the the below. Required to red Compute the underlied or everappled overhead