Not yet answered Marked out of 20 Flag question A company has decided to use Machine Hours (MHs) as the most appropriate cost driver to allocate overheads (OHDS) in their small manufacturing company. At the beginning of the year, the company set a predetermined overhead rate (POHR) for each Machine Hour used on jobs during the period. Using the following information, determine whether overhead has been over or under applied this period and calculate the adjustment required to be made to the Cost of Goods Sold (COGS) Account to eliminate any over or under applied overhead for the period. Budgeted Annual OHDS $3,520,000 Budgeted Annual Cost Driver Activity Level 17600 MH Actual Activity Level 16500 MH Actual OHDS $3,432,000 Required: Enter the amount to be applied to the COGS Account PLUS show whether this should be Debited (DR) or Creed (CP) by that amount. NOTE: Your answer must ONLY include the amount (as a positive number) and either DR or CR. o.g you decide to Credit the COGS Account by $1,000 then ONLY enter 1000 CR (Note the DR or CR should be in CAPITAL LETTERS and AFTER the number and you do NOT enter "UNDER" or "OVER