The Predetermined Overhead Rate for Shilling Manufacturing Is Based on Estimated

The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and estimated factory overhead of $770,000. Actual costs incurred were:
$$\begin{array} { l | l } \text { Direct materials } & \$ 475,000 \\\hline \text { Direct labor } & 347,000 \\\hline \text { Indirect materials } & 78,000 \\\hline \text { Indirect labor } & 143,500 \\\hline \text { Sales comrrissions } & 150,000 \\\hline \text { Factory depreciation } & 260,000 \\\hline \text { Property taxes, factory } & 35,000 \\\hline \text { Factory utilities } & 65,000 \\\hline \text { Advertising } & 62,500 \\\hline \text { Factory supervision } & 185,000\end{array}$$ a. Calculate the predetermined overhead rate and calculate the overhead applied during the year.
b. Determine the amount of over- or underapplied overhead and prepare the journal entry to eliminate the over- or underapplied overhead assuming that it is not material in amount.