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Exercise 3-9 (Algo) Applying Overhead; T-accounts; Journal Entries [LO3-1, LO3-2, LO3-4] Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $3.00 per machine-hour was based on a cost formula that estimates $258,000 of total manufacturing overhead for an estimated activity level of 86,000 machine-hours. Required: 1. Assume during the year the company works only 81,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the underapplied or overapplied overhead 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. Complete this question by entering your answers in the tabs below. Compute the underapplied or overapplied overhead and show the balance in your Manufacturing Overhead T-account. Harwood Company's job-order costing system applies overhead cost to jobs based on its machine-hours. The predetermined overhead rate of $3.00 per machine-hour was based on a cost formula that estimates $258,000 of total manufacturing overhead for an estimated activity level of 86,000 machine-hours. Required: 1. Assume during the year the company works only 81,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts: Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. 2A. Compute the underapplied or overapplied overhead 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. Complete this question by entering your answers in the tabs below. Compute the overhead cost applied to Work in Process for the year and make the entry in your T-accounts. Prepare a joumal entry to close the company's underapplied or overapplied overhead to Cost of Goods Sold. Note: If no entry is required for a transaction/event, select "No fournal entry required" in the first account field: Journal entry worksheet Record the entry to close the balance of the manufacturing overhead account to Cost of goods sold account

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