Chapter 15 598 1. Determine the predetermined overhead rate for the year, 2. Set up a T-account for overhead and enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate. 3. Determine whether overhead is overapplied or underapplied (and the amount) during the year. 4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold. Check $10.500 Factory over At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced Exercise 15 during the year by using the following cost predictions: overhead costs, $1,680,000, and direct labor costs, $480,000. At year-end, the company's records show that actual overhead costs for the year are $1,652,000. computed, af Actual direct labor cost had been assigned to jobs as follows. and adjusted P3 P4 Movies completed and released Movies still in production.. Total actual direct labor cost $425,000 50,000 $475,000