Sandhill Engineering Contractors incurred employee payroll costs of $$43,200($ $$33,600$ direct and $$9,600$ indirect$)$ on an

engineering project. The company applies overhead at a rate of $25\%$ of direct labor cost.

Record the entries to assign payroll liabilities and to apply overhead. $($List all debit entries before credit entries. Credit

account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

$($To record service salary and wages$)$

$($To record the applied overhead$)$