Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $2,145,000 of factory overhead costs and use 65,000 machine hours. Erkens Company recorded the following events during the month of April: a. Purchased 192,000 pounds of materials on account; the cost was $5.60 per pound. b. Issued 126,000 pounds of materials to production, of which 18,000 pounds were used as indirect materials. c. Incurred direct labor costs of $270,000 and $46,000 of indirect labor costs. d. Recorded depreciation on equipment for the month, $76,900. e. Recorded expired insurance costs for the manufacturing property, $4,100. f. Paid $9,100 cash for utilities and other miscellaneous items for the manufacturing plant. g. Completed Job H11 costing $8,100 and Job G28 costing $80,000 during the month and transferred them to the Finished goods inventory account. h. Shipped Job G28 to the customer during the month. The job was invoiced at 40% above cost. i. Used 8,900 machine hours during April. Required: 1. Compute Erkens Company's predetermined overhead rate for the year. 2. Prepare journal entries to record the events that occurred during April. 3-a. Compute the amount of overapplied or underapplied overhead. 3-b. Prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30.