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

Budgeted total factory overhead $$816,000$

Budgeted total direct labor hours $68,000$

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

Actual factory overhead $,$$$833,350$

Actual direct labor hours $,68,500$

Required:

Compute the firm's predetermined factory overhead rate for the current year.

Calculate the amount of overapplied or underapplied overhead.

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

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Compute the firm's predetermined factory overhead rate for the current year.

Predetermined factory overhead rate

per direct labor hour

Re: $7$ ineat $1$