Exercise $3-9($Algo$)$ Applying Overhead; T$-$accounts; Journal Entries $[$LO$3-1,$ LO$3-2,$ LO$3-4]$

Harwood Company uses a job$-$order costing system that applies overhead cost to jobs on the basis of machine$-$hours. The company's predetermined overhead rate of $$220$ per machine$-$hour was based on a cost formula that estimates $$202,400$ of total manufacturing overhead for an estimated activity level of $92,000$ machine$-$hours

Required:

Assume that during the year the company works only $87,000$ machine$-$hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T$-$accounts.

$2$A$.$ Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T$-$account

$2$B$.$ Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Complete this question by entering your answers in the tabs below.

Req $1$

Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T$-$accounts.

$\backslash$table$[[$Manufacturing Overhead,Work in Process$],[$Debit$,$Credit,Debit,Credit$],[($Maintenance$),33,000,($a$),($Direct materials$),830,000,],[($Indirect materials$),9,200,,($Direct labor$),102,000,],[($Indirect labor$),60,000,,($Overhead$)($a$),,],[($Utilities$),44,000,,,,],[($Insurance$),8,200,,,,],[($Depreciation$),40,000,,,,],[$Balance$,,,,,]]$