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 $900.000 of total manufacturing overhead for an estimated activity level of 75,000 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 60,000 850,000 Machine-hours Manufacturing overhead cost Inventories at year-endt 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) $ 30,000 $ 200.000 $ 500,000 $ 1,400,000 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 Required 1 Required 2 Assume that the company closes any underapplied 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 list View ournal entry worksheet Transaction General Journal No Transaction Recorded No Debit Credit 1 1