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 $2.60 per machine-hour was based on a cost formula that estimates $213,200 of total manufacturing overhead for an estimated activity level of 82,000 machine-hours. Required: 1. Assume that during the year the company works only 77,000 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. 28. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. 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 23,000 8,200 (Indirect labor) 75,000 (Utilities) 34,000 (Insurance) 7,200 (Depreciation) 58,000 Balance (a) (Direct materials) (Direct labor) (Overhead) (a) Work in Process 730,000 92,000