A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,060,000, and direct labor cost is $560,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead 1,060,000 896,000 Overapplied overhead Actual overhead 164,000 Actual overhead Direct labor cost Estimated overhead Overapplied overhead Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Accounts payable Record entry Clear entry View general journal II Note : Accounts payable Accounts receivable Common stock Cost of goods sold = journ Record ent View general journal