s 3. Geoffrey Manufacturing Ltd. incurred actual manufacturing overhead costs of $822,400 during the last fiscal year. The number of units manufactured was greater than planned, resulting in manufacturing overhead applied of $865,000. The following balances exist at year end: Raw materials inventory 48,000 Work-in-process inventory 72,000 Finished goods inventory $ 86,400 Cost of goods sold S321,600 Management has determined that the proportion of manufacturing overhead is the same for each account that has been allocated manufacturing overhead. Required: a) Prepare the journal entry required to dispose of the over- applied manufacturing overhead. b) How would the entry differ if the manufacturing overhead had been underapplied? Why is there a difference? c) Provide one reasonable explanation as to why management chose to use the ending account balances rather than determine the actual amount of manufacturing overhead in each account balance. 4. Qu'Appelle Industries Ltd. has been using a single manufacturing overhead cost pool to allocate its manufacturing overhead, with direct labour hours as the allocation base. For 2022. Qu'Appelle estimated its total manufacturing overhead would be $650,000, and 20,000 direct labour hours would be worked. Qu'Appelle has decided to adopt activity-based costing, and has identified three major activities. The overhead costs for 2022 have been assigned to these activities as follows Overhead Total expected Cost allocated volume of activity Transfers between processes $ 9,600 1,200 transfers Machine setups required S246,000 3.000 machine setups Machining $382,500 22.500 machine hours Total allocated to activity pools To determine the impact of the change to activity-based costing, Job 430 has been selected, and the following information gathered from the job card Direct materials used $6.900 Direct labour cost per hour $28 Direct labour hours used 10 Number of transfers Machine setups required Machine hours used 60 Number of units produced 5 45