Harwood Company uses a job$-$order costing system that applies overhead cost to jobs on the basis of machine$-$hours. The company's predetermined overhead rate of $$2\mathrm{.}40$ per machine$-$hour was based on a cost formula that estimates $$225,600$ of total manufacturing overhead for an estimated activity level of $94,000$ machine$-$hours.

Required:

Assume that during the year the company works only $89,000$ machine$-$hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T$-$accounts.

$2$A$.$ Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T$-$account.

$2$B$.$ Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Complete this question by entering your answers in the tabs below.

Req $1$

Req $2A$

Req $2$B

Compute the amount of overhead cost that wout be applied to Work in Process for the year and make the entry in your T$-$accounts.

$\backslash$table$[[$Manufacturing Overhead,Work in Process$],[($Maintenance$),35,000,($Direct materials$),850,000,,],[($Indirect materials$),9,400,,104,000,,],[($Indirect labor$),68,000,,,,],[($Utilities$),41,000,,,,],[($Insurance$),8,400,,,,],[($Depreciation$),55,000,,,,],[$Balance$,,,,,]]$