A company applies overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $1,013,400, and direct labor cost is $624,000. 1. Compute the under- or overapplied overhead. 2. Prepare the journal entry to close over- or underapplied overhead to Cost of Goods Sold.

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A companys Factory Overhead account shows total debits of $639,000 and total credits of $661,500 at the end of the year. 1. Compute the under- or overapplied overhead. 2. Prepare the journal entry to close the balance in the Factory Overhead account to Cost of Goods Sold.