EXERCISE 3-9 Applying Overhead; T-accounts; Journal Entries 15 LO3-1, 15 LO3-2, 1 LO3-4 Harwood Company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. The company's predetermined owerhead rate of $2,40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours. Required: 1. Assume that during the year the company works only 75,000 machine-hours and incurs the following costs in the Manafacturing Overbead and Work in Process accounts: Copy the data in the Tacoounts above onto your answer sheet. 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. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T. account. Prepare a journal entry to close the company's underapplied or overapplied overthead to Cost of Goods Sold 3. Fxplain why the manufacturing overbead was underapplied of overapptied for the ycar 1. The overhead applied to work in process is computed as follows: 2. Overhead is applied by : for the year, as shown in the Manufacturing Overhead account above. The entry to close out this balance to Cost of Goods Sold would be