Prepare the December 31 adjusting journal entries for Johnson Company. Data are as follows:

(a) Factory overhead is applied at a rate of 60% of direct labor costs. At the end of the year, the direct labor costs associated with the jobs still in process amounted to $6,000.

(b) A physical count of factory supplies at the end of the year shows that

$4,630 of factory supplies were used during the year.

(c) A review of the insurance policy files shows that $5,190 of insurance on the factory building and equipment has expired.

(d) Depreciation expense for the year on the factory building was $8,200 and on factory equipment was $12,400, a total of $20,600.

(e) The factory overhead account has a debit balance of $178,300 and a credit balance of $182,700 [after recording adjustments

(a) through (d)].
Was factory overhead under- or overapplied for the year?