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Harwood Company uses a job-order costing system that applies overhead cost to jobs on the...

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Accounting

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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 $2.40 per machine-hour was based on a cost formula that estimates $225,600 of total manufacturing overhead for an estimated activity level of 94,000 machine-hours. Required: 1. Assume that during the year the company works only 89,000 machine-hours and incurs the following 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. 2A. Compute the amount of underapplied or overapplied overhead for the year and show the balance in your Manufacturing Overhead T-account. 2B. Prepare a journal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Prepare a journal entry to close the company's underapplied or overapplied overhead to cus transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Record the entry to close the balance of the manufacturing overhead account to COGS account. Note: Enter debits before credits

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