2. The predetermined overhead rate for Foster, Inc., is based on estimated direct labor costs of $400,000 and estimated factory overhead of $500,000. Actual costs incurred were: Direct materials.... $240,000 Direct labor..... 410,000 Indirect materials.... 55,000 Indirect labor. 125,000 ined overh Sales commissions...... 55,000 Factory depreciation..... 170,000 Property taxes, factory... 15,000 Factory utilities................ 35,000 Advertising... 62,500 Factory equipment rental.... 110,000 (a) Calculate the predetermined overhead rate and calculate the overhead applied during the year. (b) Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.