Under-and over applied overhead (LO 6) Refer to Problem 4-27. If you have not completed that problem, do so at this time. Required ErgoFurn incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or over applied for the year? By how much? Why was overhead under- or over applied for the year? Assume that ErgoFurn closes under- or over applied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. Assume that ErgoFurn prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. Which method of under- or over applied overhead disposition is more appropriate for ErgoFurn? Why? Under-and over applied overhead (LO 6) Refer to Problem 4-27. If you have not completed that problem, do so at this time. Required ErgoFurn incurred $395,000 in manufacturing overhead in December. Given that expenditure, was manufacturing overhead under- or over applied for the year? By how much? Why was overhead under- or over applied for the year? Assume that ErgoFurn closes under- or over applied overhead to the Cost of Goods Sold account. Prepare the journal entry to close the manufacturing overhead account. Assume that ErgoFurn prorates under- or overapplied overhead to the appropriate accounts. Calculate the allocated amounts and adjust the account balances as needed. Which method of under- or over applied overhead disposition is more appropriate for ErgoFurn? Why