Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year $360,000 Estimated direct labor cost for the year (@ $9/hr.) 180,000 Actual manufacturing overhead cost for January 19,500 Actual direct labor cost for January (1,200 hours) 11,000 Assuming that direct labor hours is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. $360,000 x per direct labor hour b. Prepare a journal entry that applies consulting overhead for January. General Journal Description Debit Credit Work in process inven 22,000 0 Consulting overhead 22,000 0 c. By what amount is consulting overhead over- or under applied in January? $ 2,500 over-applied