Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and manufacturing overhead cost to products on the basis of machine-hours. The predetermined overh formula that estimates $1,066,000 of total manufacturing overhead for an estimated activity level of 82,000 machine-hours. ead rate was based on a cost During the year, a large quantity of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year Machine-hours Manufacturing overhead cost Inventories at year-end: 68,000 $ 1,029,000 Raw materials $17,000 $ 192,000 $ 288,000 $ 1,440,000 Work in process (includes overhead applied of $88,400) Finished goods (includes overhead applied of $132,600) Cost of goods sold (includes overhead applied of $663,000) 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 journal entry. 3. Assume that the company allocates any underapplied 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 will 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 Required 1 Required 2 Required 3 Required4 Compute the underapplied or overapplied overhead. Prey 10f 4H1 Next > Assume that the company closes any u (If no entry is required for a t or overapplied o select "No journal entry d to Cost of Goods Sold. in the first account field.) Journal entry worksheet to the cost of goods sold account. mi Clear entry Next > Assume that the company allocates any underapplied or overapplied overhead p Cost of Goods Sold. Prepare the appropriate journal entry. (If no entry is required for a tr required" in the first account field.) select "No journal entry ournal entry worksheet Clear entry Prex 1 of 4 Next > s1,448,000 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 journal entry 3. Assume that the company allocates any underapplied 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 willnet 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. Required 1 Required 2 Required 3 Required 4 How much higher or lower will 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? will be is a y to cost of Prey 10f 4ll Next >