The university of Chicago press is wholly owned by the university. A job order costing system is used for printing. The bulk of the work is done for other university departments which pay as thought the press were an outside business enterprise. The following data pertain to 2019:

1)Direct materials and supplies purchased on account.... $800

2)Direct materials issued to the producing department for production $700

3)Supplies issued to various producing department $100

4)Labor used directly on production $2600

5)Indirect labor incurred by various departments $900

6)Depreciation, building and equipment $400

7)Miscellaneous factor overhead incurred $550

8)Factor overhead at 80% of direct labor cost

9)Sales $8,000

10)Cost of Goods sold$5,320

Inventories at December 2018

Store control $100

Work in Process control $60

Finished Goods control $500

Required: 1)Prepare journal entries to summarize the 2019 transactions

2)Indicate if the overhead is over or under-applied.

3)Dispose of the overhead variance