Exercise 4-35 (Algo) Application of Overhead [LO 4-4, 4-5] Tomek Company uses a job costing system that applies factory overhead on the basis of direct labor hours. The company's factory overhead budget for the current year included the following estimates: Budgeted total factory overhead Budgeted total direct labor hours $ 750,000 50,000 At the end of the year, the company shows these results: Actual factory overhead Actual direct labor hours $ 768,950 50,500 Required: 1. Compute the firm's predetermined factory overhead rate for the current year. 2. Calculate the amount of overapplied or underapplied overhead. 3. Prepare a journal entry to transfer the underapplied or overapplied overhead to the Cost of Goods Sold account. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Compute the firm's predetermined factory overhead rate for the current year. Predetermined factory overhead rate per direct labor hour < Required 1 Required 2 >