Questions Partially correct Mark 14.00 out of 17.00 P Flag question Applied vs. Actual Manufacturing Overhead Davis Manufacturing Corporation applies manufacturing overhead on the basis of 140% of direct labor cost. An analysis of the related accounts and job order cost sheet indicates that during the year total manufacturing overhead incurred was $315,000 and that at year-end Work in Process inventory. Finished Goods Inventory, and Cost of Goods Sold included $40,000, 520,000, and $140,000, respectively, of direct labor incurred during the current year. a. Determine the under applied manufacturing overhead at year-end (assume it is significant). Applied Manufacturing Overhead Work in process $ 56,000 Finished goods 28.000 Cost of goods sold 196,000 Total 280,000 Under-applied manufacturing overheads 35,000 b. Prepare a journal entry to record the disposition of the underapplied manufacturing overhead. General Journal Description Debit Credit Work in process inventory 3,000 x Finished goods inventory 1,500 X 0 Cost of goods sold 10.500 K 0 Manufacturing overhead 0 35.000 Check