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 $1,040,000 of total manufacturing overhead for an estimated activity level of 80,000 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 overbead coat Inventories at year-ends Raw materials Work in process (includes overhead applied of $73,840) Finished goods (includes overhead applied of $147,680) Cost of goods sold includes overhead applied of $701, 480) 71,000 990,000 $ $ 11,000 $ 156,000 5 312,000 $1,482,000 entry 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 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 Required Compute the underapplied or overapplied overhead Underapplied overhead cost $ VUU 990,000 ULL-HUES Manufacturing overhead cost Inventories at year-end: Raw materials Work in process (includes overhead applied of $73,840) Finished goods (includes overhead applied of $147,680) Cost of goods sold (includes overhead applied of $701,480) $ 11.000 $ 156,000 $ 312,000 $ 1,482,000 Cequired: Compute the underapplied or overapplied overhead. . Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate jou 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 Proce 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 Assume that the company closes any underapplied or everapplied 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 journal entry worksheet No Event 1 Debit 1 General Journal Cost of goods sold Manufacturing overhead Credit quired: Compute the underapplied or overapplied overhead. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate Journal - Assume that the company allocates any underapplied or overapplied overhead proportionally to Work In Process, Finished Goods, nd Cost of Goods Sold. Prepare the appropriate journal entry. 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? ntry Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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. (Ir no entry is required for a transaction/event, select "No journal entry required" in the first account Tield.) View transaction list View journal entry worksheet Event No 1 Debit Credit 1 General Journal Work in process Finished goods Coot of goods sold Manufacturing overhead appropriate journal entry. 4. How much higher or lower will net operating income be if the underapplied or overapplied 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 Process, Finished Goods, and cost of Goods Sold rather than being closed to Cost of Goods Sold? Net operating income will be if the overhead is allocated rather than closed entirely to cost of goods sold.