Munoz Company and Perez Company both apply overhead to the Work in Process Inventory account using direct labor hours. The following information is available for both companies for the year. Munoz Company Perez Company $ Actual manufacturing overhead $ Actual direct labor hours. Under applied overhead Over applied overhead. 129,800 21,000 $ 23,500 278,400 27,000 16,500 Required a. Compute the predetermined overhead rate for each company. b. Using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. using T-accounts, record the entry to close the overapplied or underapplied overhead at the end of the accounting period for each company, assuming the amounts are immaterial. Adjusting Entry for Munoz Company: Manufacturing Overhead Cost of Goods Sold Adjusting Entry for Perez Company: Manufacturing Overhead Cost of Goods Sold