Managerial Accounting: E20-5 Renteria Company applies manufacturing overhead

Managerial Accounting
E20-5
Renteria Company applies manufacturing overhead to jobs on the basis of machine hours used. 
Overhead costs are expected to total $305,000 for the year, and machine usage is estimated at 125,000 hours. 
For the year, $322,000 of overhead costs are incurred and 130,000 hours are used.Instructions:
a. Compute the manufacturing overhead rate for the year. (Round answer to 2 decimal places, e.g. 10.50.)
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.
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