A company allocates overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $990,000, and direct labor cost is $530,000. Determine whether there is over- or underapplied overhead using the T-account below. Actual overhead Factory Overhead 990,000 848,000 Overhead applied 142,000 Underapplied overhead Prepare the entry to close over- or underapplied overhead to cost of goods sold. View transaction list View journal entry worksheet No Transaction General Journal 1 1 Cost of goods sold Factory overhead Debit Credit 142,000 142,000