Luzadis Company makes furniture using the latest automated technology The company uses a job-order costing system and applies manufacturing oyerhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $680000 of total manufacturing overhead for an estimated activity level of 85,000 machine hours During the year, a large quantify of fumiture on the market resulted in cutting back production and a buildup of fumiture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods sold. Prepare the appropriate joumal entry. 3. Assume that the company allocates any underappled or overapplied overhead proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. Prepare the appropriate journal entry. 4. How much higher or lower wil net operating income be if the underapplied or overapplied overhead is allocated to Work in Process. Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. Compute the underappled or overapplied overhead