Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $308,800 for the year, and machine usage is estimated at 125,000 hours. For the year, $327,113 of overhead costs are incurred and 130,800 hours are used.

Instructions
a. Compute the manufacturing overhead rate for the year.
b. What is the amount of under-or-overapplied overhead at December 31?
c. Assuming the under-or-overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold.