E425 Overappiied or underapplied overhead: manufacturer The following information relates to Beautiful Designs Pty Ltd for the year just ended: Budgeted direct labour cost 80 000 hours @ $22 per hour Actual direct labour cost 78 000 hours (:3) $25 per hour Budgeted manufacturing overhead $ 1 048 000 Actual manufacturing overhead: Depreciation $256 000 Property taxes 19 000 Indirect labour 88 000 Supervisory salaries 2 10 000 Electricity 48 000 Insurance 25 000 Factory rent 290 000 Indirect material (see data below) 64 000 Indirect material: Beginning inventory, 1 January $60 000 Purchases 84 000 Ending inventory, 3 1 December 80 000 Required: 1. Calculate the rm's predetermined overhead rate, which was based on direct labour hours. 2. Calculate the overapplied or underapplied overhead for the year. 3. Prepare a journal entry to close the manufacturing overhead account to cost of goods sold. 4. What caused the overapplied or underapplied overhead