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 $2.90 per machine-hour was based on a cost formula that estimates $246,500 of total manufacturing overhead for an estimated activity level of 85,000 machine-hours. Required: 1. Assume that during the year the company works only 80,000 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. 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. Manufacturing Overhead Work in Process Debit Credit Debit (Maintenance) 26,000 (a) (Direct materials) 760,000 (Indirect materials) 8,500 (Direct labor) 95,000 (Indirect labor) 86,000 (Overhead) (a) (Utilities) 37,000 (Insurance) 7,500 (Depreciation) 72,000 Balance Credit Req 1 Req 2A Req 2B Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. manufacturing overhead S Journal entry worksheet < 1 Record the entry to close the balance of the manufacturing overhead account to COGS account. Note: Enter debits before credits. Event a. General Journal Debit Credit Record entry Clear entry View general journal