1. Write the journal entry for Department A's TOTAL overhead application for the year. Be sure to use Journal Entry format.

2. Write the journal entry for Department A to close any balance in the overhead account to Cost of Goods Sold. Be sure to use Journal Entry format.

3. Was Department A's overhead overapplied or underapplied for the year?

Sharkskin Shoes Company estimates the following data for their 3 departments for the upcoming year. Department A 80,000 Department B 45,000 Department 60,000 Direct Labor Hours Machine Hours 30,000 70,000 21,000 Direct Materials Cost $300,000 $400,000 $536,000 $290,000 $315,000 Manufacturing OH Cost $510,000 The company allocated overhead using the following cost drivers: Department A Department B Department C Direct Labor Hours Machine Hours Direct Materials Cost Department A works on 3 jobs during the year. Direct Labor Hours for the 3 jobs are as follows: Job 123 12,000 hours Job 456 36,000 hours Job 789 30,000 hours Actual Overhead for Department A for the year was $535,000