QS 15-11 Entry for over- or underapplied overhead LO P4 A company applies overhead at a rate of 155% of direct labor cost. Actual overhead cost for the current period is $903,250, and direct labor cost is $535,000. Determine whether there is over- or underapplied overhead using the T-account below. Answer is complete and correct. Factory Overhead 903.250 829,250 Overhead applied Actual overhead Underapplied overhead 74.000 Prepare the journal entry to close over- of underapplied overhead to cost of goods sold. No Transaction General Journal Debit Credit