Apply Estimated Overhead - Illustration Predetermined overhead rate Estimated overhead costs Estimated activity base Getty Images/Cultura Knowledge Check 01 Dream House Builders, Incorporated applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700. Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. View transaction list Journal entry worksheet Dream House Builders, Inc. applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31, the direct labor for this job equals $2,700. Note: Enter debits before credits. General Journal Debit Credit Date Jan 31 Record entry Clear entry View general journal