Barron Corp uses a normal job-order costing system with overhead applied to products on the basis of direct labor hours. For the upcoming year, Barron Corp estimated total manufacturing overhead cost at $250,000 and total direct labor hours of 50,000. During the year actual overhead incurred was $262,500 and 51,000 direct labor hours were used. Calculate the predetermined overhead rate.

1. QUESTION What journal entry would Barron Corp require to apply overhead to production?

2. What journal entry would Barron Corp. require to close manufacturing overhead?