A company applies overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $1010,000, and direct labor cost is $515,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. View transaction list Journal entry worksheet Record the entry to close over- or underapplied overhead. Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. View transaction list Journal entry worksheet aces Record the entry to close over- or underapplied overhead. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal