Help Save & Exit Submit TB ES Qu. 7-127 (Static) Carlson Corporation applies overhead based upon... Carlson Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $266,400 and budgeted machine-hours were 18.500. Actual factory overhead was $287.920 and actual machine-hours were 19.050. Before disposition of over- or underapplied overhead, the cost of goods sold was $560,000 and ending inventories were as follows: Direct materials WIP Finished goods Total $ 60,000 190,000 250,000 $500,000 Required: a. Compute the amount of overhead applied to production. b. Prepare the journal entry to dispose of the over/underapplied overhead using the write off to cost of goods sold approach. c. Prepare the journal entry to dispose of the over/underapplied overhead using the proration approach