Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The predetermined overhead rate was based on a cost formula that estimates $612,000 of total manufacturing overhead for an estimated activity level of 68,000 machine-hours. 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-ends Rav materials Work in process (includes overhead applied of $22,500) Finished goods (includes overhead applied of $76,500) Cost of goods sold includes overhead applied of $351,000) Required: 1. Compute the underapplied or overapplied overhead. 50,000 $570,000 518,000 5 93,500 5 317,900 $1,458,600 2. Assume that the company closes any underapplied or averapplied 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 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume that the company closes any underapped or overapplied overhead to Cost of Goods Sold, Prepare the appropriate journal entry (If no entry is required for a transaction/event, select "No journal entry required" in the first account field) View transaction Nat Journal entry worksheet Ch Required 1 Required 2 Required 3 Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropria (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. Note: Enter debits before credits. Event 1 General Journal Debit Credit Record entry Clear entry View general journal