Gallagher Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $425,000 for the year, and machine usage is estimated at 125,000 hours. For the year, $450,000 of overhead costs are incurred and 130,000 hours are used. Compute the manufacturing overhead rate for the year. Overhead rate per machine hour What is the amount of under - or overapplied overhead at December 31? Overhead Assuming the under - or overapplied overhead for the year is not allocated to inventory accounts, prepare the adjusting entry to assign the amount to cost of goods sold. Account Titles and Explanation Debit Credit