Yarra Fabrication estimates that its manufacturing overhead will be $2,265,600 in year 1. It further estimates that direct material costs will amount to $1,416,000. Actual manufacturing overhead costs for the year were $2,420,000. Actual direct materials costs were $1,570,000. Manufacturing overhead is applied to jobs based on direct materials cost using predetermined rates. The total applied overhead for the year was $2,512,000

The balance in each of the inventory accounts is as follows.

Work-in-process inventory	$	462,000
Finished goods inventory	$	1,092,000
Cost of goods sold	$	6,846,000

Required:

Prepare an entry to allocate the over- or underapplied overhead. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Journal entry worksheet Record an entry to allocate the over- or underapplied overhead. Note: Enter debits before credits