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Paul Company used a predetermined overhead rate based on an estimate of 44,000 direct labor hours to be worked during the year and an estimated $154,000 of manufacturing overhead. Actual overhead cost and activity during the year were:

Actual manufacturing overhead cost incurred $180,000

Actual direct labor hours worked 50,000

1. Compute the predetermined OH rate.
2. Compute the OH allocated.
3. Compute the over or underallocated OH.
4. Prepare the journal entry to close the OH.