Sicily Company reported the following actual cost data for the year:

purchase of raw materials (all direct)266,000

direct labour cost 160,000

manufacturing overhead costs 246,000

change in inventories:

decrease in raw materials 10,000

decrease in work in process 8,000

decrease in finish goods 16,000

Sicily Company used a 150% predetermined overhead rate based on direct labour cost. The rate was based on annual estimated overhead cost and direct labour cost of $252,000 and $168,000, respectively.

Required:

A. Calculate the cost of goods manufactured.

B. What was the cost of goods sold before adjusting for any under or overapplied overhead?

C. By how much was manufacturing overhead cost under or overapplied?

D. What is the summary journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold.

E. How do you analyze the under or overapplied manufacturing overhead costs calculated in part c above into two separate components: amount due to incorrect estimate of the annual manufacturing overhead costs and an amount due to incorrect estimate of the annual direct labour cost.

I have a) $690,000, b) $706,000 c) Underapplied by $6,000 d) cost of goods sold (deb) manufacturing overhead (cre) $6,000, But

How do I go about part E?