Estimated Factory Overhead of Halloween Candy is $7,000. The company has direct labor of $20,000 and direct labor hours of 28,000 hours. Halloween Candy decides to use direct labor cost as activity base. Based on the given information, please answer the following questions (Three questions + one bonus question):

Estimated Factory Overhead of Halloween Candy is $7,000. The company has direct labor of $20,000 and direct labor hours of 28,000 hours. Halloween Candy decides to use direct labor cost as activity base. Based on the given information, please answer the following questions (Three questions + one bonus question): 1. Make journal entries for the following transactions. 3. Is overhead over or under applied and by how much? ( 2 points) Please also prepare the journal entry to close the overhead account. (1 point) *(Bonus) Assuming all the productions are completed and sold for $45,000. Please calculate the gross profit (Please present your calculation process). (4 points) Estimated Factory Overhead of Halloween Candy is $7,000. The company has direct labor of $20,000 and direct labor hours of 28,000 hours. Halloween Candy decides to use direct labor cost as activity base. Based on the given information, please answer the following questions (Three questions + one bonus question): 1. Make journal entries for the following transactions. 3. Is overhead over or under applied and by how much? ( 2 points) Please also prepare the journal entry to close the overhead account. (1 point) *(Bonus) Assuming all the productions are completed and sold for $45,000. Please calculate the gross profit (Please present your calculation process). (4 points)