At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $750,000, and direct materials costs, $625,000. At year-end, the company reports that actual overhead costs for the year are $758,000. 1. Determine the predetermined overhead rate using estimated direct materials costs. 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 11 Required 2 Required 3 Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. Actual overhead Factory Overhead 758,000 750,000 Applied overhead 8,000 Required 1 Required 3 At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $750,000, and direct materials costs, $625,000. At year-end, the company reports that actual overhead costs for the year are $758,000. 1. Determine the predetermined overhead rate using estimated direct materials costs. 2. Enter the actual overhead costs incurred and the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Determine whether overhead is over- or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold. View transaction list View journal entry worksheet No Date General Journal 1 December 31 Cost of goods sold Required 2 Required 3 Debit Credit