Erkens Company uses a job costing system with normal costing and applies factory overhead based on machine hours. At the beginning of the year, management estimated that the company would incur $2,046,000 of factory overhead costs and use 62,000 machine hours.

Erkens Company recorded the following events during April:

1. Purchased218,000pounds of materials on an account; the cost was $5.30per pound.
2. Issued139,000pounds of materials to production, of which24,500pounds were used as indirect materials.
3. Incurred direct labor costs of $335,000 and $59,000 of indirect labor costs.
4. Recorded depreciation on equipment for the month, $79,500.
5. Recorded expired insurance costs for the manufacturing property, $5,400.
6. Paid $10,400 cash for utilities and other miscellaneous items for the manufacturing plant.
7. Completed Job H11 costing $9,400 and Job G28 costing $86,500 during the month and transferred them to the Finished goods inventory account.
8. Shipped Job G28 to the customer during the month. The job was invoiced at 30% above cost.
9. Used 11,500 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 the cost of goods sold on April 30.