Crane Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimated to total $235,750 for the year, and machine usage is estimated at 102,500 hours. For the year, $264,040 of overhead costs are incurred, and 106,600 hours are used.

Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)