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 $$230$ per machine$-$hour was based on a cost formula that estimates $$213,900$ of total manufacturing overhead for an estimated activity level of $93,000$ machine$-$hours.

Required:

Assume that during the year the company works only $88,000$ 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.

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$\backslash$table$[[$Req $1,$Req $2$A$,$Req $2$B$,,,.,],[,,,,,,],[,,$Manufacturing Overhead,Work in Process$],[$Debit$,$Credit,Debit,Credit$],[($Maintenance$),,34,000,($a$),($Direct materials$),840,000,],[\frac{(Indirect\text{m}\text{a}\text{t}\text{e}\text{r}\text{i}\text{a}\text{l}\text{s})}{(Indirect\text{l}\text{a}\text{b}\text{o}\text{r})},9,300,,($Direct labor$),103,000,],[68,000,,($Overhead$)($a$),,]]$

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company's underapplied or overapplied overhead to Cost of Goods Sold.

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Compute the amount of overhead cost that

$\backslash$table$[[$Manufacturing Overhead$],[($Maintenance$),34,000],[($Indirect materials$),9,300],[($Indirect labor$),68,000],[($Utilities$),40,000],[($Insurance$),8,300],[($Depreciation$),45,000],[$Balance$,]]$

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in Process for the year and make the entry ir

$\backslash$table$[[$Work in Process$],[$Debit$],[($Direct materials$),840,000],[($Direct labor$),103,000],[($Overhead$)($a$),],[,]]$