Exercise 7-30 (Algo) Prorate Under- or Overapplied Overhead (LO 7-3) Southern Rim Parts estimates its manufacturing overhead to be $306,000 and its direct labor costs to be $1,020,000 for year 1. The first three jobs that Southern Rim worked on had actual direct labor costs of $61,000 for Job 301, $86,000 for Job 302, and $155,000 for Job 303. For the year, actual manufacturing overhead was $419,000 and total direct labor cost was $838,000. Manufacturing overhead is applied to jobs on the basis of direct labor costs using predetermined rates. bed Overhead applied in each of the inventory accounts is as follows: Work-in-process inventory $ 25, 140 bok Finished goods inventory 75, 420 Cost of goods sold 150 , 840 ences Required: Prepare an entry to prorate the under- or overapplied overhead. (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