The Donna Manufacturing Company expects to produce 10,000 units in a normal year. Its budgeted factory overhead is \(\$ 20,000\). Actual production in \(20 \mathrm{X} 9\) was 10,000 units. During the year, the company incurred the following manufacturing overhead expenses:

{Required:}
(1) Calculate the predetermined overhead rate.
(2) Prepare journal entries for manufacturing overhead.
(3) Close any under- or overapplied overhead to cost of goods sold.

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Indirect labor.......... ..... $2,000 Indirect materials (supplies.)............. 4,000 Depreciation-plant and equipment... 3,000 Insurance-plant........ Property taxes.. Utilities. 2,000 3,000 ........ 5,000