Ramirez Company uses a predetermined overhead rate. Overhead for the next twelve months is estimated to be $500,000. Ramirez applies overhead as a percentage of direct labor cost. Direct labor costs are estimated to be $625,000 for the next year. During the year actual direct labor costs amounted to $600,000 and the actual overhead was as follows: Maintenance $ 50,000 Indirect materials 25,000 Indirect labor 80,000 Factory rent 90,000 Depreciation 70,000 Payroll taxes 80,000 Other 80,000 Total $ 475,000 1 Required: 1. (1) Calculate the over/under-applied overhead for the year. 2. (2) Prepare the journal entry to close the overhead accounts, assuming that the over/under-applied overhead is closed to cost of goods sold