QS 2-11 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 $1,190,000, and direct labor cost is $560,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Actual overhead 1,190,000 1,190,000 - or underapplied overhead to cost of goods sold Prepare the entry to close over 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 Record entry Clear entry View general journal