PA10. LO 4.6 The actual overhead for a company is $74,539. Overhead was based on 6,000 direct labor hours and was $2,539 underapplied for the year. A. What is the overhead application rate per direct labor hour? B. What is the journal entry to dispose of the underapplied overhead? Solution A. Actual overhead Underapplied overhead Applied overhead Divided by direct labor hours Predetermined overhead rate per direct labor hour B. Cost of Goods Sold Manufacturing Overhead