i Problem 3-12 (Static) Predetermined Overhead Rate; Disposing of Underapp Overhead [LO3-4] Saved Luzadis Company makes furniture using the latest automated technology. The company uses a job- manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhe formula that estimates $900,000 of total manufacturing overhead for an estimated activity level of T Machine-hours Manufacturing overhead cost Inventories at year-end: During the year, a large quantity of furniture on the market resulted in cutting back production and a company's warehouse. The company's cost records revealed the following actual cost and operating Raw materials Work in process (includes overhead applied of $36,000) Finished goods (includes overhead applied of $180,000) Cost of goods sold (includes overhead applied of $504,000) Q Search Prev ********** %253A%252F%252Fnewcor Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. entry. 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Wor and Cost of Goods Sold. Prepare the appropriate journal entry. 1 of 3 - HH 60,000 $ 850,000 Next $ 30,000 $ 100,000 $ 500,000 $ 1,400,000 N