Tomek Company uses a job costing system that applies factory overhead on the basis of direct labor hours. The companys factory overhead budget for the current year included the following estimates:

Budgeted total factory overhead$ 512,000Budgeted total direct labor hours64,000

At the end of the year, the company shows these results:

Actual factory overhead$ 521,350Actual direct labor hours64,500

Required:

1. Compute the firms predetermined factory overhead rate for the current year.

2. Calculate the amount of overapplied or underapplied overhead.

3. Prepare a journal entry to transfer the underapplied or overapplied overhead to the Cost of Goods Sold account.