QS 19-11 Entry for over- or underapplied overhead LO P4 A company applies overhead at a rate of 150% of direct labor cost. Actual overhead cost for the current period is $945,500, and direct labor cost is $585,000. Determine whether there is over- or underapplied overhead using the T-account below. Factory Overhead Actual overhead 945,500 Overhead applied 945,500 Prepare the journal entry to close over- or underapplied overhead to cost of goods sold. View transaction list Journal entry worksheet Record the entry to close over- or underapplied overhead. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry View general journal Clear entry