Scanlon Company has a job-order costing system and applies manufacturing overhead cost to products on the basis of machine hours. The following estimates were used in preparing the predetermined overhead rate for the most recent year Machine hours: 95,000 Manufacturing overhead cost: $1,710,000 During the most recent year, a severe recession in the company's industry caused the curtailment of production and a buildup of inventory in the company's warehouses. The company's cost records revealed the following actual cost and operating data for the year: Machine hours: 75,000 Manufacturing overhead cost: $1,687,500 Amount of applied overhead in inventories at year-end Work in process: $337,500 Finished goods: 253,125 Amount of applied overhead in cost of goods sold for the year 759.375 Required: (e) Compute the company's predetermined overhead rate for the year and the amount of under- or overapplied overhead for the year Clearly indicate if it is over or under applied (5 Marks) (a) Compute the company's predetermined overhead rate for the year and the amount of under- or overapplied overhead for the year Clearly indicate if it is over or under applied.(5 Marks) (b) Provide the entry to write off the overhead from above, using the proration method (use the chart below for your calculations) 6 Marks Account Name End Balance of Accounts Percentage of Total Amount of Overhead(total overhead x %age) Work in Process Finished Goods Cost of Goods Sold Total Use the numbers in the last column to provide the journal entry Date Description DR CR (c) Determine the difference between net income for the year if the under- or over applied overhead is allocated to the appropriate accounts rather than closed out directly to Cost of Goods Sold (4 Marks)