Taylor Company uses normal job costing. It allocates manufacturing overhead costs using a budgeted rate per machine-hour. The following data are available for 2017:

Budgeted manufacturing overhead costs $3,800,000

Budgeted machine-hours 200,000

Actual manufacturing overhead costs $3,660,000

Actual machine-hours 196,000

1. Show two T-accounts, MOHA and MOHC. In the MOHA T-account, show the calculation of allocated OH.

2. Write a journal entry to record the allocation of OH to a job.

3. Show the journal entry to close MOHA, MOHC, and adjust COGS.

4. Is the allocated OH over-or under-applied?