QS 15-11 Entry for over- or underapplied overhead LO P4 A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,110,00o, and direct labor cost is $565,000 Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Actual overhead Direct labor cost Overhead applied Overapplied overhead 1,110,000 565,000 904,000 2,579,000 Prepare the entry to close over- or underapplied overhead to cost of goods sold. View transaction list Journal entry worksheet 1 Record the entry to close over- or underapplied overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Clear entry Record entry View general journal