Pharoah Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimate $322,000 for the year, and machine usage is estimated at 140,000 hours. For the year, $360,640 of overhead costs are incurred, and 145,600 hours are used.

Pharoah Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are estimate $322,000 for the year, and machine usage is estimated at 140,000 hours. For the year, $360,640 of overhead costs are incurred, and 145,600 hours are used. Prepare the adjusting entry to assign the under-or overapplied overhead for the year to cost of goods sold. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.)