1-

Determine whether overhead is overapplied or underapplied.

2-

Prepare the journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.

3-

Valle Home Builders

Determine whether overhead is overapplied or underapplied.

4-

Prepare journal entry to allocate (close) overapplied or underapplied overhead to Cost of Goods Sold.