Sloan Manufacturing Corporation applies manufacturing overhead on the basis of $120\%$ 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 $$588,000$ and that at year$-$end

Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold included

$$84,000,$$$56,000,$ and $$420,000,$ respectively, of direct labor incurred during the current year.

a$.$ Determine the over$-$applied manufacturing overhead at year$-$end $($assume it is significant$).$

Over$-$applied manufacturing overhead $

b$.$ Prepare a journal entry to record the disposition of the over$-$applied manufacturing

overhead.