Alien Company bases it overhead on Machine Hours, which are estimated to be 320,000 and the estimated FOH is $384,000. Indirect Labor - 234,000

Direct Labor - 432,000

Advertising Expense - 145,000

Indirect Materials - 125,000

Direct Materials - 252,000

Sales - 375,000

Depreciation Expense - Machinery - 55,000

Machine hours - 340,000

(a) Calculate the predetermined overhead rate and calculate the overhead applied during the year. Show Journal Entry

(b) Determine the amount of over- or underapplied overhead and state whether it was under or overapplied. Prepare the journal entry to eliminate the over- or underapplied overhead.