Question - Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $269,800 and machine hours to be 14,200. Actual manufacturing overhead and machine hours were $314,800 and 15,200, respectively.
Required: Prepare the journal entries for overhead. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
• Record the actual manufacturing overhead cost incurred.
• Record the application of manufacturing overhead to production.
• Record the transfer of manufacturing overhead account balance to cost of goods sold.