PROBLEM III: 9 POINTS (SHOW ALL YOUR WORK) Newton Company bases it overhead on Direct Labor Costs, which are estimated to $450,000 and the estimated FOH is $900,000. Indirect Materials.................. $234,000 Depreciation - Factory Building 243,000 Advertising Expense................ 145,000 Indirect Labor 330,000 Sales Commissions...... 510,000 Direct Materials 375,000 Direct Labor.............. 400,000 Property Tax - Factory......... 24,000 (a) Calculate the predetermined overhead rate and calculate the overhead applied the year. Show Journal Entry (b) Determine the amount of over- or underapplied overhead and state whether it under or overapplied. Prepare the journal entry to eliminate the over- or underap overhead