Predetermined Overhead Rates

Aspen Company estimates its manufacturing overhead to be $$625,000$ and its direct labor costs to be $$500,000$ for year $2.$ Aspen worked on three jobs for the year. Job $2-1,$ which was sold during year $2,$ had actual direct labor costs of $$195,000.$ Job $2-2,$ which was completed, but not sold at the end of the year, had actual direct labor costs of $$325,000.$ Job $2-3,$ which is still in work$-$in$-$process inventory, had actual direct labor costs of $$130,000.$ Actual manufacturing overhead for year $2$ was $$825,000.$ Manufacturing overhead is applied on the basis of direct labor costs.

Required

a$.$ How much overhead was applied to each job in year $2?$

b$.$ What was the over$-$ or underapplied manufacturing overhead for year $2?$

$7-28.$ Prorate Over$-$ or Underapplied Overhead

Refer to the information in Exercise $7-27.$ Prepare an entry to allocate over$-$or underapplied overhead to:

a$.$ Work in Process.

b$.$ Finished Goods.

c$.$ Cost of Goods Sold.