During the month of August, Star Plastics applied overhead to jobs using an overhead rate of $3 per dollar of direct labor. Direct labor in August was $100,000. Actual overhead in August was $260,000. Assume that actual overhead was composed of the following items.

Indirect materials .......................................... $ 40,000

Indirect labor ................................................. 80,000

Utilities .......................................................... 25,000

Depreciation ................................................. 60,000

Repair expense ............................................... 55,000

Total ......................................................... $260,000

Required

a. Prepare a journal entry to record overhead applied to jobs.

b. Prepare a journal entry to record actual overhead.