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(Hint: Do the cost of goods sold amounts that you computed in requirements 1 and 2 differ from one another? Do the bid prices that you computed in requirements 1 and 2 differ from one another? Why?) EXERCISE 2-18 Applying Overhead;?accounts; Journal Entries [L02-1, LO2-2, LO2-4, LO2-5, LO2-7] Harwood Company uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 80,000 machine-hours would be required for the period's estimated level of production. The company also estimated $128,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $0.80 per machine-hour. Required: 1. Compute the company's predetermined overhead rate 2. Assume that during the year the company works only 75,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Manufacturing Overhead Work in Process 21,000 (Indirect materials) 8,000 60,000 32,000 7,000 56,000 (Direct materials) (Direct labor) (Overhead) 710,000 90,000 (Maintenance) (Indirect labor) (Utilities) (Insurance) (Depreciation) the data inthe T-accounts abeye onto your answer sheet. Compute the amount of overhead cost