Question Pharoah Auto Shop uses a normal job-costing system to allocate overhead on the basis of labour hours. For the current year, Pharoah estimated that the total overhead costs would be $71,400 and that the total labour hours would be 2,550. At the end of the year, Pharoah obtained the actual overhead costs from the ledger and found that the shop had incurred $65,000 and had worked 2,500 labour hours. Compute the predetermined (budgeted) overhead rate Overhead Rate Compute the overhead amount that was applied for the year. Was overhead underapplied or overapplied? Overhead Amount Prepare the journal entry to close the overhead account. Assume that the underapplied and overapplied overhead was not material. (Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry Required" for the account tities and enter 0 for the amounts) Account Tites and Debit Credit