The simple circular flow model shows that
a. total income received by households is different from the dollar value of all goods and services produced because the units of measurement are not the same.
b. total income received by households is less than the total value of goods and services produced because of leakages.
c. total income received by households is less than total payments to business because there are business profits.
d. total income received by households must be equal to the dollar value of all goods and services produced.

Harwood company uses a job-order costing system that applies overhead cost to jobs on the basis of machine-hours. the company's predetermined overhead rate of $2.50 per machine-hour was based on a cost formula that estimates $240,000 of total manufacturing overhead for an estimated activity level of 96,000 machine-hours. required: 1. assume that during the year the company works only 91,000 machine-hours and incurs the following costs in the manufacturing overhead and work in process accounts: compute the amount of overhead cost that would be applied to work in process for the year and make the entry in your t-accounts. 2a. compute the amount of underapplied or overapplied overhead for the year and show the balance in your manufacturing overhead t-account. 2b. prepare a journal entry to close the company's underapplied or overapplied overhead to cost of goods sold.