Sweeten Company had no jobs in progress at the beginning of March and no beginning inventories. It started only two jobs during March Job P and Job Q. Job P was completed and sold by the end of March and Job Q was incomplete at the end of March. The company uses a plant wide predetermined overhead rate based on direct labour hours. The following additional in formation is available for the company as a whole and for Jobs P and Q (all data and questions relate to the month of March):

Required

Prepare the journal entry to close the amount of under applied or over applied overhead to the appropriate account.

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Estimated total fixed manufacturing overhead .. Estimated variable manufacturing overhead per direct labour-hour. Estimated total direct labour-hours to be worked . . Total actual manufacturing overhead costs incurred. $10,000 $ 1.00 2,000 $12,500 Job Q Job P Direct materials. $13,000 $21,000 1,400 $8,000 $7,500 Direct labour. Actual direct labour-hours worked 500