Calculate and Use Overhead Rate Selected data for the consulting department of Austin Consulting, Inc., follow: Estimated consulting overhead cost for the year Estimated direct labor cost for the year (@ $9/hr.) Actual manufacturing overhead cost for January Actual direct labor cost for January (1,200 hours) $520,000 180,000 19,500 11,000 Assuming that direct labor hours is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. $ 26 per direct labor hour b. Prepare a journal entry that applies consulting overhead for January. General Journal Description Debit Credit Work in process inventory 31,777 0 Consulting overhead 0 31,777 c. By what amount is consulting overhead over- or under applied in January? $ 12,277.78 over-applied