Exercise 3-9 (Algo) Applying Overhead; T-accounts: Journal Entries [LO3-1, LO3-2, LO3-4] Harwood Company uses a job order casting system that apples overhead cost to jobs on the basis of machine hours. The company's predetermined overhead rate of $2.50 per machine hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine hours. Required: 1. Assume that during the year the company works only 91000 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 accounts. 2A. Compute the amount of underapplied or averapplied overhead for the year and show the balance in your Manufacturing Overhead Taccount 28. 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. Reg 1 Reg 2A Reg2 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. Manufacturing Overhead 37,000 9.500 Work in Process B70,000 (Maintenance) (Indirect materials) (indirector (L) (Direct materials (Director) (Overhead)) 108,000 78.000 43.000 (insurance (Depreciation) Balance 2,500 57,000 Req2A >