ACCT$202-$ Ch$3$ Assignment Job Order Costing: Cost flows and External reporting

Question $3$:

Harwood Company uses a job$-$order costing system that applies overhead cost to jobs on the basis of machine$-$hours. The company's predetermined overhead rate of $$2\mathrm{.}90$ per machine$-$hour was based on a cost formula that estimates $$246,500$ of total manufacturing overhead for an estimated activity level of $85,000$ machine$-$hours.

Required:

Assume that during the year the company works only $80,000$ machine$-$hours and incurs thefollowing costs in the Manufacturing Overhead and Work in Process accounts: Compute the amount of overhead cost that would be applied to Work in Process for the year and make the entry in your T$-$accounts.

$\backslash$table$[[$Debit$],[$Danufacturing Overhead$],[($Maintenance$),22,000,,($a$)],[($Indirect materials$),8,100,,],[($Indirect labor$),65,000,,],[($Utilities$),35,000,,],[($Insurance$),7,100,,],[($Depreciation$),57,000,,],[$Balance$,,,]]$

$\backslash$table$[[$Work in Process,$],[$Debit$,$Credit$],[($Direct materials$),720,000,,],[($Direct labor$),91,000,,],[($Overhead$)($a$),,,]]$

$2$A$.$ Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T$-$account.

$2$B$.$ Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold.

Question $4$: