erizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $$180,480.$ Estimated direct labor cost was $$468,480$ for $19,200$ hours.

Actual costs for the most recent month are summarized here:

Item Description Total Cost

Direct labor $(1,500$ hours$)$ $ $46,849$

Indirect costs

Indirect labor $2,520$

Indirect materials $3,470$

Factory rent $3,240$

Factory supervision $4,850$

Factory depreciation $5,740$

Factory janitorial work $1,240$

Factory insurance $1,820$

General and administrative salaries $4,200$

Selling expenses $5,370$

Required:

$1.,2.$ & $3-$a$.$ Prepare the journal entries for overhead.

$3-$b$.$ Does the last transaction increase or decrease Cost of Goods Sold?