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Harwood Company's job - order costing system applies overhead cost to jobs based on its machine - hours. The predetermined overhead rate of $ 2

Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $2.40 per machine-hour was based on a cost formula that estimates $192,000 of total manufacturing overhead for an estimated activity level of 80,000 machine-hours.
Required:
Assume during the year the company works only 75,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts.
2A. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account.
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