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 $$2\mathrm{.}30$ per machine$-$hour was based on a cost formula that estimates $$225,400$ of total manufacturing overhead for an estimated activity level of $98,000$ machine$-$hours.

Requlred:

Assume that during the year the company works only $93,000$ 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 $28$

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.

$\backslash$table$[[$Manufacturing Overhead,Work in Process$],[$Debit$,$Credit,Debit,,edit$],[($Maintenance$),39\mathrm{.}000,2,($a$),\backslash$table$[[($Direct materials$),890\mathrm{.}000]],,],[($Indirect materials$),9,800,\backslash$table$[[2]],10,\backslash$table$[[($Direct labor$),108,000]],,],[($Indirect labor$),60,000,,+2,\backslash$table$[[($Overhead$)($a$),]],,\stackrel{}{x}$