Overapplied Overhead Because manufacturing overhead is applied to production based on estimates of overhead costs and levels of cost driver activity, applied manufacturing overhead is rarely equal to actual manufacturing overhead. At the end of the year, Jenkins Manufacturing has the following amounts of actual and applied overhead: Actual manufacturing overhead $1,050,000 Applied manufacturing overhead $1,240,000 Amount of Overhead % Work in progress 30 Finished goods 10 Cost of goods sold 60 Prepare a journal entry to adjust the accounts for the overapplied overhead, assuming that the amount is considered material by the company.