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Your boss is sick and you have to prepare the journal entries for the You are the new accounting clerk for the Mauve Mask Company. MMC is a face mask manufacturing company using job$-$order costing. At the beginning of the month, the company$$s inventory balances were as follows:

Raw materials Inventory $..............$ $$923,128$

Work in process Inventory............ $$276,000$

Finished goods Inventory............. $$750,000$

The company applies overhead to jobs using a predetermined overhead rate based on direct labor hours. At the beginning of the year, the company estimated that it would work $5,000$ direct labor hours and incur $$90,000$ in manufacturing overhead costs. The following transactions were recorded for the year:

The company paid for the development of a new website to sell its product at $$150,000$

Raw materials costing $$222,00$ were purchased on account.

During the month $$130,000$ of materials were requisitioned for use in production, of which $$120,000$ worth of fabric was requisitioned for use in the production of the masks and directly traced to particular jobs in the factory. The remainder was indirect materials including clean fluid for the machines and hand sanitizer for employees.

Employee costs were incurred:

mask makers $($direct factory labor$)-$ $$77,000$ at an average of $$22$ per hour $($for $3,500$ direct labor hours$)$

supervisors, plant security, plant maintenance and plant managers $($indirect factory labor$),$ $$15,000$

SGA $-$ selling, general and administrative salaries, $$50,000$

Utility costs and property taxes of $$30,000$ were incurred $($accrued$)$ for the factory and $$44,000$ in costs were incurred for the headquarters building.

Depreciation for the period was $$100,000$ of which $$14,000$ is related to the factory building and equipment while the remaining and $$86,000$ is related to the headquarters office building.

Manufacturing overhead was applied to jobs.

Several batches of masks costing $$450,000$ based upon the completed job cost sheets were completed and moved to the delivery area.

Face masks with a cost of $$800,000$ were sold on account for $200\%$ of cost$.$

The over or underapplied overhead journal entry must be made. $($Be sure to indicate if overhead is over or underapplied.$)$

Use the information above to answer the following questions in good form.

When preparing journal entries, it may be difficult to get them to line up properly...therefore, indicate which is your debit and which is your credit.

For example

DR: Tax expense XXX

CR: Cash XXXX

It is time to apply the overhead. Based upon your predetermined overhead rate, how much manufacturing overhead was applied?