The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour

Actual direct-labor cost: 80,000 hours at $17.50 per hour

Budgeted manufacturing overhead: $997,500

Actual selling and administrative expenses: 434,000

Actual manufacturing overhead:
Depreciation	$	230,000
Property taxes		22,000
Indirect labor		82,000
Supervisory salaries		200,000
Utilities		58,000
Insurance		30,000
Rental of space		302,000
Indirect material (see data below)		78,000
Indirect material:
Beginning inventory, January 1		49,000
Purchases during the year		93,000
Ending inventory, December 31		64,000

Required:

1. Compute the firms predetermined overhead rate, which is based on direct-labor hours.

2. Calculate the overapplied or underapplied overhead for the year.

3. Prepare a journal entry to close out the Manufacturing Overhead account into Cost of Goods Sold.