Creative Woodworking is a job shop that uses normal costing. Manufacturing overhead is allocated to jobs based on direct labor hours. Under or over allocated overhead is written off to CGS. Data for 2020 is presented below.

			budget 2020	actual 2020
overhead costs			$4,140,000	$4,337,000
direct material costs			$6,500,000	$5,840,000
direct labor costs			$8,800,000	$8,988,000
hourly wage rate			$20.00	$21.00

1. Calculate over or under applied overhead for 2020. (2 points)

over/under applied OH
is it over or under applied OH

2. Provide the journal entry that writes off over/under applied OH to CGS. (2 points)