Exercise $7-35($Algo$)$ Prorate Over$-$ or Underapplied Overhead $($LO $7-3)$

Linzee Liners estimates that its manufacturing overhead will be $$1,759,500$ in Year $1.$ It further estimates that direct labor costs will amount to $$765,000.$ During March, Linzee worked on four jobs with actual direct labor costs of $$36,500$ for Job $0301,$ $$24,000$ for Job $0302,$ $$33,500$ for Job $0303,$ and $$17,500$ for Job $0304.$ Actual manufacturing overhead costs for the year were $$1,747,500.$ Actual direct labor costs for the year were $$750,000.$ Manufacturing overhead is applied to jobs based on direct labor costs using predetermined rates.

The amount of overhead applied in each of the inventory accounts at the end of Year $1$ is as follows.

$\backslash$table$[[$Work$-$in$-$process inventory,$$34,500$