At the beginning of the year, Infodeo established its predetermined overhead rate for movies produced during the year by using the following cost predictions: overhead costs, $2,160,000,and direct labor costs, $480,000. At year-end, the company's records show that actual overhead costs for the year are $1,554,900. Actual direct labor cost had been assigned to jobs as follows.

Movies completed and released$300,000Movies still in production48,000Total actual direct labor cost$348,000

1.Determine the predetermined overhead rate for the year.

2&3.Enter the overhead costs incurred and the amounts applied to movies during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.

4.Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.