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 $1,060,000, and direct labor cost is $520,000. Determine whether there is over- or underapplied overhead using the T-account below. Answer is not complete. Factory Overhead 1,060,000 806,000 Actual overhead Overhead applied 254,000 Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. Answer is complete and correct. No Transaction General Journal Debit Credit A 1 254,000 Cost of goods sold Factory overhead 254,000