EYhens Corporation uses a job-cost system and applies manufacturing overhead to products on the basis of machine hours. The company's accountant estimated that overhead and machine hours would total $800,000 and 50,000, respectively, for 20x1. Actual costs incurred follow.

Direct material used	$250,000
Direct labor	300,000
Manufacturing overhead	816,000

An examination of job-cost records revealed that 18 jobs were sold during the year at a total cost of $2,960,000. These goods were sold to customers for $3,720,000.

Actual machine hours worked totaled 51,500, and the company adjusts under- or overapplied overhead at year-end to Cost of Goods Sold.

Required:

A. Determine the company's predetermined overhead application rate.

B. Determine the amount of under- or overapplied overhead at year-end (variance) . Show the adjusting entry and be sure to indicate whether overhead was under- or overapplied.

C- Show the ledger of the WIP account.