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 $237,500 of total manufacturing overhead for an estimated activity level of 95,000 machine-hours. Required: 1. Assume that during the year the company works only 90,000 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 2B 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. Work in Process Credit Manufacturing Overhead Credit 36,000 237,500(a) 9,500 75,000 44,000 8,500 56,000 8,500 Debit (Maintenance) (Indirect materials) (Indirect labor) (Utilities) (Insurance) (Depreciation) Balance Debit (Direct materials) (Direct labor) (Overhead) (a) 860,000 105,000 237,500 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. Underapplied manufacturing overhead 8,500 Req 1 Req 2A Req 2B Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. (If no entry is re transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet Debit Credit No 1 Event 1 General Journal Cost of goods sold Manufacturing overhead 8,500 8,500