Problem 3-12 (Aigo) Predetermined Overhead Rate: Oisposing of Underapplied or Oustapolines Overhead [2.034] Luxadis Company makes fumizure using the latest autamated technolomy. The campany uses a job aroer cesone wniken and aephes. manufacturing owerheded cast to producte on the basis of machine-hours. The predetermined owemead ratin wab bavelan a cost formula that estimates 51,207,000 of totad menufacturing overheod for an estimated actwify level of hooo miechine hiskirs. During the year, a large quantity of furniture on the market resulted in cutting back production and a buhicup of hamitire in thin company's warehouse. The company's cost records revealed the following actual cost and operating data lor the vear Required: 1. Compute the underapplied or overapplied overhead. 2. Assume that the company closes any underapplied or overapplied overhead to Cost of Goods Sold. Prepare the appropriate journal antry. Assume that the company allocates any underapplied or overapplied overhead proportionally to Work. in Process. Finisthed Goods. nd Cost of Goods Sold. Prepare the appropriate journal entry. How much higher or lower will net operating income be if the underapplied or overapplied overhead is allocated to Wokk in Process, ished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. Compute the underapplied or overapplied overhead. Record the entry to close the balance in the manufacturing overhead account to the cost of goods sold account. Note: Enter debits before credits. Journal entiy wroricsheet Record the allocation of the underapplied/overapplied overhead to various accounts. Note: Enter debits before credits. 4. How much higher or lower will net operating income be if the underapplied or overapplied ovemeod is alocated to Work in Proces Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Complete this question by entering your answers in the tabs below. How much higher or lower will net operating Income be if the underapplied or overapplied overhead 15 allocated to Wotk in Process, Finished Goods, and Cost of Goods Sold rather than being closed to Cost of Goods Sold? Net operating income will be overhead is allocated rather than closed entirely to cost of goods sold