Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $184,320. Estimated direct labor cost was $451,200 for 19,200 hours.

Actual costs for the most recent month are summarized here:

Item DescriptionTotal CostDirect labor (1,500 hours)$ 45,121Indirect costs Indirect labor2,460Indirect materials3,480Factory rent3,290Factory supervision4,790Factory depreciation5,650Factory janitorial work1,230Factory insurance1,790General and administrative salaries4,130Selling expenses5,320

Required:

1., 2. & 3-a. Prepare the journal entries for overhead.

3-b. Does the last transaction increase or decrease Cost of Goods Sold?