Shawano Corporarion applies overhead based upon machine-hours. Budgeted factory overheadwas 266.400 and budget machine-hours were 18.500. Actual factory overhead was $287,920 and actual machine-hours were 19,050. Before disposition of over- or underapplied overhead, the cost of goods sold was $560,000 and ending ending inventories were as fallows: Direct material: $60,000 WIP 190,000 Finished goods 250,000 Total $500,000

Question required:

a. compute the amount of overhead applied to production.

b. Prepare the journal entry to dispose of the over/under-applied overhead using the write-off cost of goods sold approach.

c. Prepare the journal entry to dispose of the over/under-applied overhead using the proration approach.