A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,050,000, and direct labor cost is $535,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Journal entry worksheet 1 Record the entry to close over- or underapplied overhead Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal