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

overhead rate of $$2\mathrm{.}40$ per machine$-$hour was based on a cost formula that estimates $$225,600$ of total manufacturing overhead for

an estimated activity level of $94,000$ machine$-$hours.

Required:

Assume during the year the company works only $89,000$ 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.