QS 15-11 Entry for over- or underapplied overhead LO P4 A company applies overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $1,010,000, and direct labor cost is $545,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Actual overhead Overhead applied Underapplied overhead Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. View transaction list Journal entry worksheet A > Record the entry to close over- or underapplied overhead. Note: Enter debits before credits Transaction General Journal Debit Credit 1 Record entry Clear entry View general Journal