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 $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. Required: 1. Assume that during the year the company works only 91,000 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. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 2B. 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 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. (Maintenance) (Indirect materials) Manufacturing Overhead 37,000 9,600 (e) (Direct materials) (Direct labor) Work in Process 870,000 106,000 (Indirect labor) 76.000 (Utilities) 43,000 (Insurance) 8,600 (Depreciation) 57,000 Balance (Overhead) (a) Req 2A >