EXERCISE 3-9Applying Overhead; T-accounts; Journal Entries LO3-1, LO3-2, LO3-4 Harwood Company's job-order costing system applies overhead cost to jobs based on machinehours. The predetermined overhead 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 during the year the company works only 75,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Copy the data in the T-accounts above onto your answer sheet. Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. 3. Explain why the manufacturing overhead was underapplied or overapplied. EXERCISE 3-9Applying Overhead; T-accounts; Journal Entries LO3-1, LO3-2, LO3-4 Harwood Company's job-order costing system applies overhead cost to jobs based on machinehours. The predetermined overhead 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 during the year the company works only 75,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Copy the data in the T-accounts above onto your answer sheet. Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. 3. Explain why the manufacturing overhead was underapplied or overapplied