O'Brien Corporation Applies Overhead at the Rate of 70 Percent

Essay

O'Brien Corporation applies overhead at the rate of 70 percent of direct labor.O'Brien incurred $450,000 of direct labor during the current year.O'Brien incurred actual overhead of $367,000.
(a)Compute the amount of under- or overapplied overhead for O'Brien Corporation for the current year
(b)Prepare the necessary journal entry to dispose of the under- or overapplied overhead (assuming that the amount is immaterial).