Harwood Company is a manufacturing firm that operates a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $192,000 in manufacturing overhead costs and work 80,000 machine-hours.

Required:

1.	Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places.)

2.	Assume that 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. Compute the missing amounts and show the balance in your manufacturing overhead T-account. (Do not round intermediate calculations.)

3-a.	Compute the amount of under- or overapplied overhead for the year, and show the balance in your manufacturing overhead T-account.

3-b.	Prepare a general journal entry to close out the balance in this account to cost of goods sold. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)

Predetermined overhead per MH rate Manufacturing Overhead Work in Process (Maintenance) 19,000 (Direct materials) 710,000 (Indirect materials) 6,000 (Direct labour) 90,000 (Indirect labour) (Utilities) (Insurance) 60,000 (Overhead) 30,000 7,000 (Depreciation) 54,000 (Property taxes) 8,000 Balance overhead is Record entry to write off over or underapplied overhead 1 to cost of goods sold