Exercise 3-9 Applying Overhead; T-accounts; Journal Entries (LO3-1, LO3-2, 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 overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $242,500 of total manufacturing overhead for an estimated activity level of 97,000 machine-hours. Required: 1. Assume that during the year the company works only 92,000 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. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 2B. 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 Req 2A Req 2B 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. Work in Process 880,000 107,000 (Direct materials) |(Direct labor) (Overhead) (a) Manufacturing Overhead 38,000 9,700 70,000 44,000 8,700 Maintenance) Indirect materials) Indirect labor) Utilities) Insurance) Depreciation) 62,000 Balance Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account from Req 1. verapplied manufacturing overhead