Blue Sky Soda estimates total factory overhead costs of $4,200,000 and total direct labor costs of $2,800,000 for its first year of operations. During January, the company used $80,000 of direct labor cost in its Blending department and $60,000 of direct labor cost in its Bottling department. 

1. Compute the predetermined overhead rate as a percentage of direct labor cost. 

2. Prepare the journal entry to apply factory overhead to the Blending and Bottling departments.