* Problem No. 3 (x2) ** The Glass City Company had the following transactions and events during its first year of operations. Estimated overhead for the year was $770,000; Estimated direct labor cost for the year was $350,000. a) Purchased materials on account, $567,00 b) Requisitioned materials for production as follow:-direct materials-85% of purchases, indirect martials 12% of purchases. c) Direct labor for production is $331,000, indirect labor is $125,000 Overhead incurred (not including materials or labor): $529,000 e) Overhead is applied to production based on direct labor cost. (Use the POHR calculated in part 1 to calculate the applied OH and then prepare the journal entry) Required: - Part 1. What is the Predetermined Overhead Rate for the year? 770,000350.000 -1000-220 % of direct labor cost Part 2. Prepare the journal entries to record transactions a - e. Part 3 Is the overhead over-or under-applied and by how much? Part 4 - Prepare the journal entry to make the adjustment of over- or under-applied overhead to Cost of Goods Sold