Problem 5. Last year, the David Company established its predetermined overhead rate for jobs produced this year by using the following estimates: Total estimated overhead costs 750,000 Total estimated direct labor costs 600,000 At year end, the company showed actual overhead costs of 830,000. Actual direct labor costs are 685,000. Jobs completed and sold 513,750 Jobs in finished inventory 102,750 Jobs in work in process inventory 68,500 Total actual direct labor costs 685,000 a. Showing your formula and labeling your numbers, show the predetermined overhead allocation rate for the current year. Round to two places. b. Set up a t-account for factory overhead and enter the actual overhead amounts and the amounts applied using the predetermined allocation rate. C. Determine whether overhead is over or under applied and by how much? d. Write out the journal entry to close out the over or under applied amount at year end