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 $2,345,000 of factory overhead costs and use 67,000 machine hours.

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

Purchased 196,000 pounds of materials on account; the cost was $5.80 per pound.

Issued 128,000 pounds of materials to production, of which 19,000 pounds were used as indirect materials.

Incurred direct labor costs of $280,000 and $48,000 of indirect labor costs.

Recorded depreciation on equipment for the month, $77,300.

Recorded expired insurance costs for the manufacturing property, $4,300.

Paid $9,300 cash for utilities and other miscellaneous items for the manufacturing plant.

Completed Job H11 costing $8,300 and Job G28 costing $81,000 during the month and transferred them to the Finished goods inventory account.

Shipped Job G28 to the customer during the month. The job was invoiced at 35% above cost.

Used 9,300 machine hours during April.

Required:

1. Compute Erkens Companys 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