Denner Company incurred actual manufacturing

overhead costs of $260,000 during the year ended December 31, 2016. A total of $350,000 in overhead

was applied to jobs. At December 31, 2016, work-in-process inventory totals $100,000, and finished goods

inventory totals $300,000. Cost of goods sold before adjustments totals $600,000 for the year.

Required:

a. Is overhead underapplied or overapplied?

b. Close the manufacturing overhead account, assuming the balance is immaterial.

c. Close the manufacturing overhead account, assuming the amount is material.