A company allocates overhead at a rate of 150% of direct labor cost. Actual overhead cost for the current period is $950,000, and direct labor cost is $600.000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Prepare the entry to close over- or underapplied overhead to cost of goods sold View transaction list Journal entry worksheet 1 Record the entry to close over- or underapplied overhead. Note: Enter debits before credits. General Journal Transaction Debit Credit 1 Clear entry Record entry View general journal