Exercise 2-26 (Algo) Computing applied overhead and closing over- or underapplied overhead LO P4 At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $640,000, and direct materials costs, $200,000 At year-end, the company reports that actual overhead costs for the year are $648,900. 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Determine the predetermined overhead rate using estimated direct materials costs. Ch References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3. Determine the predetermined overhead rate using estimated direct materials costs. Numerator: Overhead Rate Denominator Overhead Rate Overhead rate < Prev 4 of 9 Next > 4 nts $648,900 1. Determine the predetermined overhead rate using estimated direct materials costs 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. eBook Hint ferences Required 1 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over or underapplied (and the amount) for the year. Factory Overhead 20 oints 4 Required 1 Required 2 Required 3 Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. View transaction list Journal entry worksheet eBook Him Deferences < Close underapplied overhead to COGS Note: Enter debts before credits. Date December 31 General Joumal Debit Credit