Exerclse 15-26 (Algo) Computing applled overhead and closing over-or underapplled overhead LO P4 At the beginning of the year, Custom Manufacturing set its predetermined overhead

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Exerclse 15-26 (Algo) Computing applled overhead and closing over-or underapplled overhead LO P4 At the beginning of the year, Custom Manufacturing set its predetermined overhead rate using the following estimates: overhead costs, $1,200,000, and direct materials costs. $500.000 At year-end, the company reports that actual overhead costs for the year are $1,208,900 and actual direct materials costs for the year are $500,000 1. Derermine the predetermined overhead tate using estimated direct materials costs 2. Enter the actual ovemead costs incurred ond the amount of overhead cost applied to jobs during the year using the predetermined overhead rate. Detemine whether overhead is over-or underapplied (and the amount) for the year. 3. Prepare the entry to close any over- or underapplied overhead to Cost of Goods Sold