Melinda Corporation estimates its factory overhead based on direct labor hours. Melinda estimates FOH to be $1,750,000 and direct labor hours to be 500,000. Actual information is as follows:

Sales	$1,234,000
Direct Labor	432,000
Advertising Expense	145,000
Indirect Materials ..	1,210,000
Direct Materials .	252,000
Indirect Labor	400,000
Depreciation Expense - Factory	185,000
Direct labor hours.....	510,000

(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.