1. The ABC Company uses the job order costing system and uses a predetermined overhead rate based upon direct labor hours. Manufacturing overhead cost and direct labor hours at the beginning of the period were estimated at $100,000 and 40,000 hours respectively. In July, Job #334 was completed at a cost $5,000 in direct material and $2,400 in direct labor. The direct labor rate $15 per hour. At year end, ABC worked a total of 45,000 direct labor hours and incurred $1 10,250 of actual manufacturing overhead. Determine the amount of under or overapplied overhead for the year. Ans: beginning Petiod Year Lo01000 direct labor 36,0 BONUS: Assuming that ABC disposes under or over applied overhead to COGS provide the appropriate journal entry to deal with the over or under applied condition Credit Debit