Adams Company and Baird Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year.

Adams Company Baird Company

Actual manufacturing overhead $ $192,500$ $ $263,100$

Actual direct labor hours $27,00026,000$

Underapplied overhead $13,500$

Overapplied overhead $ $23,500$

Required

Compute the predetermined overhead rate for each company.

Using T$-$accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial.