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) $360,000 180,000 19,500 11,000 Assuming that direct labor cost is the basis for applying consulting overhead, a. Calculate the predetermined overhead rate. % b. Prepare a journal entry that applies consulting overhead for January. General Journal Description Debit Credit Work in process inventory 32400 0 Consulting overhead c. By what amount is consulting overhead over- or underapplied in January? 0 32400 Consulting overhead was over-applied by $ 12900 in January.