At the end of the year, overhead has been over applied by $$7,000.$ Which of the following would occur to close out this over applied overhead?

Group of answer choices

The cost of goods sold T$-$account would be debited for $$7,000$ and the finished sold T$-$account would be credited for $$7,000.$

Your company uses direct labor hours as the basis on which to apply overhead to specific manufactured products. Your company has the following expectations for the coming year:

Indirect labor $=$ $$300,000$

Direct labor $=$ $$500,000$

Direct labor hours $=20,000$ hours

Indirect materials $=$ $$200,000$

Direct materials $=$ $$400,000$

Calculate the predetermined overhead rate for your company?

Group of answer choices

$$25$ per hour

$$20$ per hour

$$36$ per hour

$$61$ per hour

$$56$ per hour

The overhead T$-$account would be debited for $$7,000$ and the cost of goods sold T$-$account would be credited for $$7,000.$

The WIP T$-$account would be debited for $$7,000$ and the cost of goods sold T$-$account would be credited for $$7,000.$

The cost of goods sold T$-$account would be debited for $$7,000$ and the overhead sold T$-$account would be credited for $$7,000.$

The cost of goods sold T$-$account would be debited for $$7,000$ and the WIP sold T$-$account would be credited for $$7,000.$