Safi Manufacturing produces small motor components. Selected data for the company follows.

Estimated manufacturing overhead costs for November $22,800

Estimated direct labor hours for November 3,500 hours

Estimated direct labor costs for November $52,400

Estimated direct material costs for November $12,300

Actual manufacturing overhead costs for November $22,400

Actual direct labor hours for November 3,510 hours

Actual direct labor costs for November $50,100

Actual direct material costs for November $11,900

REQUIRED:

A. Assuming that overhead is allocated based on direct labor hours, calculate Safi's predetermined overhead rate for November.

B. Prepare the November 31 adjusting entry to account for any over- or under-applied manufacturing overhead.