At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead

costs, $$600,000,$ and direct materials costs, $$300,000.$ At year$-$end, the company reports that actual overhead costs for the year are

$$608,200$ and actual direct materials costs for the year are $$300,000.$

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.

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 $3$

Determine the predetermined overhead rate using estimated direct materials costs.