Hunter Corporation uses activity-based costing to determine product costs for external financial reports. At the beginning of the year, management made the following estimates of cost and activity in the company's five activity cost pools:
(b) During the year, actual overhead cost and activity were recorded as follows: (i) Prepare a journal entry to record the incurrence of actual manufacturing overhead cost for the year (credit Accounts Payable). Post the entry to the company's Manufacturing Overhead T-account. (ii) Determine the amount of overhead cost applied to production during the year. (iii) Prepare a journal entry to record the application of manufacturing overhead cost to Work in Process for the year. Post the entry to the company's Manufacturing Overhead T-account. (iv) Determine the amount of underapplied or overapplied manufacturing overhead for the year.