3.

At the beginning of the year, Complete It, Inc. established its predetermined overhead rate for applying factory overhead to its inventory produced during the year by using the following predicted costs: Estimated Factory Overhead $1,200,000 Estimated Direct Labor $ 800,000 At year-end, the company's records show the following actual costs: Actual Factory Overhead $1,232,000 Actual Direct Labor $ 820,000 Required: (a) Determine the predetermined overhead rate for the year. (b) Determine the amount of factory overhead costs applied to Work in Process Inventory during the year. (c) Determine the amount of overapplied or underapplied overhead. (d) Prepare the adjusting journal entry to close out the overapplied or underapplied overhead, assuming that the amount is immaterial