ErgoFurn, Inc. manufactures ergonomically designed computer furniture. ErgoFurn uses a job order costing system. On November 30, the Work in Process Inventory consisted of the following jobs: Job No. CC723 Computer caddy 20,000 CH291 Chair PS812 Printer stand Item Units Accumulated Cost $900,000 431,000 250,000 $1,581,000 15,000 25,000 On November 30, ErgoFum's Raw Materials Inventory account totaled $668,000, and its Finished Goods Inventory totaled $3,456,400. ErgoFurn applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totaled $4,500,000, and the company planned to use 900,000 machine hours during the year. Through the first eleven months of the year, the company used a total of 830,000 machine hours, total manufacturing overhead amounted to $4,274,500, and Cost of Goods Sold was $8,750,250 ErgoFurn purchased $638,000 in raw materials in December and incurred the following costs for jobs in process that month Materials Machine Direct Labor Direct Labo Job No. Issued CC723 $155,000 12,000 CH291 PS812 $211,000 19,500 DS444 $252,000 14,000 Hours Hours Cost 11,600 3,600 14,300 12,500 $122,400 $13,800 4,400 $43,200 $200,500 $138,000 The following jobs were completed in December and transferred to the Finished Goods Inventory: Units Job No. CC723 Computer caddy 20,000 CH291 Chair DS444 Desk Item 15,000 5,000 Assume that ErgoFurn sold 15,000 computer caddies, 12,000 chairs, and 4,500 desks in December ErgoFurn incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or overapplied for the year? By how much? Overhead by $ Assume that ErgoFurn doses under- or overapplied overhead to the Cost of Goods Sold account. Prepare the jounal entry to dlose the manufacturing overhead account. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Account Titles and Explanation Debit Credit Assume that ErgoFurn prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. (Round % of total to 1 decimal places, eg. 52.7% and and final answers to 0 decimal places eg. 5,275.) Allocation Adjusted Balance Work In Process Finished Goods$ Cost of Goods Sold $ Click if you would like to Show Work for this question: Open Show Work