Application of Overhead Tomek Company uses a job costing system that applies factory...

Application of Overhead 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 2013 included the following estimates:

Required

1. Compute the firm’s predetermined factory overhead rate for 2013.

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.