Luzadis Company makes furniture using the latest automated technology. The company uses a job order coating 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 $830,000 of total manufacturing overhead for an estimated activtty level of 88,000 machine-hours Dumng the year, a large quantity or 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 79,000 136,000 Machine hours Manufacturing overhead cost Inventories at year-endt Raw baterials Work in process (includes overhead applied of 571,100) Finished goods (includes overhead applied of $134,300) Cost of goods sold includes overhead applied of 5584,500) 15,00 5 171,00 5 324,700 5 1,413,400 Required: 1. Compute the underapplied or overapplied overhead 2. Assume that the company closes any underapplied or overappiled overtiead to cost of Goods Sold. Prepare the appropriate journal entry 3. Assume that the company allocates any underapphed 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 Hequired 4 Compute the underapplied or overapplied overhead. Required 1 Required 2 Required 3 Required 4 Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate jou (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 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 entry 3. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work in Process, Finished G 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 F 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? Net operating income will be overhead is afloated rather than closed entirely to cost of goods sold if the
