1. A manufacturing company applies factory overhead based on machine hours. At the beginning of the year, it estimated that factory overhead costs would be $65,975 and machine hours would be 4,550 hours. Actual factory overhead costs incurred were $69,875 and actual machine hours were 4,890.

a. Calculate the predetermined overhead rate.

b. Provide the journal entry to record the applied factory overhead.

c. Provide the journal entry to close out the factory overhead account.