Question - Harwood Company is a manufacturing firm that operates a job-order costing system. Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that the company would incur $168,000 in manufacturing overhead costs and work 70,000 machine-hours.
Required:
1. Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places.)
2. Assume that during the year the company works only 66,500 machine-hours and incurs the following costs in the manufacturing overhead and work-in-process accounts. Compute the missing amounts and show the balance in your manufacturing overhead T-account. (Do not round intermediate calculations.)
3-a. Compute the amount of under- or overapplied overhead for the year, and show the balance in your manufacturing overhead T-account.
3-b. General journal entry to close out the balance in this account to cost of goods sold. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)