Dearborn Corp. allocates overhead to production on the basis of direct labor costs. At the beginning of the year Dearborn estimated Costs to be: Estimated total overhead 375,000 Direct materials 525,000 Direct labor 250,000 Estimated Total Costs 1,150,000 12 Calculate the Prie-determined Overhead rate estimated overhead 14 Overhead 15 Direct labor 19 All product that was produced was sold. Determine the amount of overhead to be allocated to Cost of Good Sold given these actual costs: Total Overhead 435,000 Direct materials 518,000 Direct labor 275,000 Total Costs 1,228,000 18 19 All product that was produced was sold. Determine the amount of overhead to be allocated to Cost of Good Sold given these actual costs: Total Overhead 435,000 Direct materials 518,000 Direct labor 275,000 Total Costs 1,228,000 25 Direct Labor 26 Overhead Rate x 27 Applied OH = Actual OH - Difference = 30 or Over-applied Credit 32 Prepare the entry to clear the overhead account Debit Account: Account: Problem Problem e