Exclusive Souvenirs Hut does customize, hand-crafted memorabilia for hotels, in which each batch of souvenirs is a job. The company uses a perpetual inventory system and has a highly labour-intensive production process, so it assigns manufacturing overhead based on direct labour cost. Exclusive's predetermined overhead rate for 2020 was computed from the following data: Total estimated factory overhead Total estimated direct labour cost $2,400,000 $2,000,000 The WIP account given below relates to the activities of Exclusive Souvenirs for the month of June: June 1 Balance b/f Direct Materials Used WIP Inventory A/C $15,000 123,000 Additional data: " Total material requisitioned. $153,000 " Manufacturing Labour Costs incurred. ......$163,500 (75% represents direct labour) $94,275 Other manufacturing overheads incurred................ Two jobs were completed with total costs of $183,000 and $105,000 respectively. They were sold to the hotel on account at a margin of 33 1/3% on sales. Required: c) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account. What is the balance on the account before performing end of period closing entries? Is manufacturing overhead under- or over- absorbed? State the journal entries necessary to dispose of the variance. Assume that the manufacturing overhead variance is immaterial. (5 marks)