Job costing, normal versus actual under-or overapplied overhead.(J.Watson) The following information relates to the activities of King Ltd. for the year 2016. The company uses normal costing and applies overhead on the basis of machine-hours (MH). The company had calculated its overhead rate to be $4.25 per MH on the basis of 60,000 budgeted MH. Actual MH worked in the plant were 63, 200. Required Compute the amount of overallocated or underallocated overhead for the year. Prepare the journal entry to record the disposition of the amount of overallocated or underallocated overhead assuming the company writes off the difference to Cost of Goods Sold Identify and briefly outline an alternative treatment (from requirement 2) for disposing of overallocated or underallocated overhead. Briefly explain the differences between actual and normal costing, and state how the Schedule of Cost of Goods Manufactured would differ under actual costing