The predetermined overhead allocation rate for ABA, Inc., is based on estimated direct labor costs of $600,000 and estimated factory overhead of $780,000. The following calendar year information about the ABA Corporation is available on December 31; the Actual costs incurred :

Advertising expense	$ 31,800
Depreciation of factory equipment	39,650
Depreciation of office equipment..	13,800
Direct labor	190,200
Factory utilities...	42,300
Interest expense...	6,650
Property taxes, factory	24,900
Inventories, January 1:
Raw materials	7,450
Goods in process	17,250
Finished goods...	35,600
Inventories, December 31:
Raw materials..	10,300
Goods in process..	21,700
Finished goods	32,250
Factory depreciation	21,100
Rent on factory building	52,000
Indirect labor..	65,550
Sales commissions..	18,500

1.Calculate the predetermined overhead rate and calculate the overhead applied during the year

2. Determine the amount of over- or underapplied overhead

3. prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount

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