Carla Vista Engineering Contractors incurred employee payroll costs of $$42,480($$$33,040$ direct and $$9,440$ indirect$)$ on an engineering project. The company applies overhead at a rate of $25\%$ of direct labor cost.

Record the entries to assign payroll liabilities and to apply overhead. $($List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$Account Titles and ExplanationDebitCredit$($To record service salary and wages$)($To record the applied overhead$)$