During the month of August, Star Plastics applied overhead to jobs using an overhead rate of $3 per dollar of direct labor. Direct labor in August was $100,000. Actual overhead in August was $260,000. Assume that actual overhead was composed of the following items.

Actual Overhead and Overhead Applied to Jobs

Required

1-Prepare a journal entry to record overhead applied to jobs.

2-Prepare a journal entry to record actual overhead.

Indirect materials Indirect labor Utilities Depreciation Repair expense Total 40,000 80,000 25,000 60,000 55,000 260,000