Problem 11-18 (Part Level Submission) Bechtel Technical Clothing produces parkas used by arctic explorers, mountain climbers, and people living in Minnesota. The company uses a standard costing system, and standards call for 2.5 yards of material at $55 per yard for each parka. The standard cost for labor is 3.5 hours at $35 per hour. Standard overhead is $14 per unit. For the year 2015, expected production is 7,500 parkas with fixed overhead of $53,000 and variable overhead of $6.5 per parka. During 2015, 8,500 parkas were manufactured. The company purchased 22,300 yards of material at a cost of $1,248,800. Production required 22,300 yards of material. The cost of direct labor was $1,000,000 for 27,600 hours. Actual overhead for the year was $86,900. All purchases are on account.

Prepare a journal entry to record actual overhead and overhead applied. Record manufacturing overhead to Miscellaneous Accounts. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)