Problem 2: We Manufacture Junk applies factory overhead at a rate of 150% of direct labor. Direct labor was $250,000 for the period. We Manufacture Junk incurred actual factory overhead cost of $350,000 consisting of: indirect material, $50,000; indirect labor, $100,000; insurance, $50,000; rent, $100,000; and utilities $50,000. Record the journal entries to (1) record applied overhead, (2) record the actual overhead usage, and (3) to adjust the overhead account. AND, is the Factory Overhead account over or under applied?

(15 points) The factory overhead rate is (circle one): OVERAPPLIED UNDERAPPLIED

General jou

Debit

credit