Roofing Co. uses a job order cost system. Each customers house is treated as a separate job. Overhead is applied to each job based on number of roofing hours required for the job. Data is as follows:

Estimated overhead $780,000

Actual overhead $772,450

Actual roofing hours 38,750

Estimated roofing hours 39,000

Instructions: SHOW ALL CALCULATIONS FOR THE FOLLOWING:

a. Compute the predetermined overhead rate

b. Prepare the entry to apply overhead for the year

c. Determine whether overhead is over or underapplied, and by how much. Use a T account to show your work.

d. Prepare the journal entry need to close out MOH