Harwood Company's job$-$order costing system applies overhead cost to jobs based on its machine$-$hours. The predetermined overhead rate of $$2\mathrm{.}40$ per machine$-$hour was based on a cost formula that estimates $$192,000$ of total manufacturing overhead for an estimated activity level of $80,000$ machine$-$hours.

Required:

$1.$ 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.

$2$A$.$ Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T$-$account.

$2$B$.$ Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.