In December 2014, Custom Mfg. established its predetermined overhead rate for jobs produced during year 2015 by using the following cost predictions: overhead costs, $560,000, and direct labor costs, $200,000. At year-end 2015, the companys records show that actual overhead costs for the year are $1,453,400. Actual direct labor cost had been assigned to jobs as follows.

Jobs completed and sold	$	380,000
Jobs in finished goods inventory		77,000
Jobs in work in process inventory		59,000
Total actual direct labor cost	$	516,000

1.	Determine the predetermined overhead rate for year 2015

Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.

Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.