- Reno, Inc. applies overhead to jobs using direct labor hours as its allocation base, at a rate of $20/di hr. Actual direct labor hours for the period totaled 11,000 hours. Actual overhead was $250,000 and unadjusted COGS was $330,000. Is overhead over or under-applied? What is the COGS after adjusting for over/under-applied OH ? - Assume that a company provided the following T-account before it had recorded any closing entries. Is MOH under or overapplied, and what is the corresponding journal entry to close this amount? $8,000