Dream House Builders, Incorporated applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31 , the direct labor for this job equals $2,700 Complete the following journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns. Journal entry worksheet Dream House Builders, Inc, applies overhead by linking it to direct labor. At the start of the current period, management predicts total direct labor costs of $100,000 and total overhead costs of $20,000. On January 31 , the direct labor for this job equals $2,700. Total manufacturing costs include direct materials, direct labor, plus: Factory overhead applied Actual factory overhead Work in process beginning inventory Work in process ending inventory Bridge Builders Company examined its Factory Overhead account at the end of the year and discovered a debit balance. What does this indicate? Overhead has been underapplied. Overhead has been overapplied. Overhead has been applied in error. Overhead has been ignored. Overhead has been double-counted