A company applies overhead at a rate of 160% of direct labor cost. Actual overhead cost for the current period is $925,000, and direct labor cost is $545,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead 925,000 872,000 Overhead applied Actual overhead 53,000 Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. View transaction list Journal entry worksheet A Record the entry to close over- or underapplied overhead. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general Journal