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 $1,430,000 of factory overhead costs and use 55,000 machine hours.

Erkens Company recorded the following events during the month of April:

a.Purchased 204,000 pounds of materials on account; the cost was $4.60 per pound.b.Issued 132,000 pounds of materials to production, of which 21,000 pounds were used as indirect materials.

c.Incurred direct labor costs of $300,000 and $52,000 of indirect labor costs.d.Recorded depreciation on equipment for the month, $78,100.e.Recorded insurance costs for the manufacturing property, $4,700.f.Paid $9,700 cash for utilities and other miscellaneous items for the manufacturing plant.g.Completed Job H11 costing $8,700 and Job G28 costing $83,000 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 10,100 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.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3-a.Compute the amount of overapplied or underapplied overhead.

3-a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30.(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)