Exercise 7-30 (Algo) Prorate Under- or Overapplied Overhead (LO 7-3) Southern Rim Parts estimates its manufacturing overhead to be $396,000 and its direct labor costs to be $990,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $58,000 for Job 301, $83,000 for Job 302, and $140,000 for Job 303. For the year, actual manufacturing overhead was $434,000 and total direct labor cost was $841,000 Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. Overhead applied in each of the inventory accounts is as follows Work-in-process inventory $ 33,640 Finished goods Inventory Cost of goods sold 84,108 218,660 Required: Prepare an entry to prorate the under- or overapplied overhead assuming the company uses both Applied Manufacturing Overhead and Manufacturing Overhead Control accounts. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet < A Record the allocation of over- or underapplied overhead. Note: Enter debits before credits. Transaction 1 General Journal Debit Credit