It was year-end and time for the Sweltzer Co. accountant to address its MOH costs.

Throughout the year, the company incurred actual MOH costs of $237,000. Its budgeted MOH costs were

very close to this, at $225,000. Using a budgeted MOH rate of $1.50 per direct labor dollar, the company

applied MOH cost to production after recognizing $140,000 in direct labor cost. Determine whether MOH

was under- or overapplied this year and by how much, and record the journal entry to write off this difference

directly to Cost of Goods Sold