Gabby Company bases it overhead on Machine Hours, which are estimated to be 400,000 and the estimated FOH is $800,000. Direct Labor.. Indirect Labor $325,000 522,000 Sales Commissions.... 215,000 Direct Materials 400,000 Indirect Materials. 300,000 Revenue 525,000 Depreciation Expense- Building....... Machine hours....... 200,000 420,000 (a) Calculate the predetermined overhead rate and calculate the overhead applied during the year. Show Journal Entry (b) Determine the amount of over- or underapplied overhead and state whether it was under or overapplied. Prepare the journal entry to eliminate the over- or underapplied overhead