Chapter 19, Problem 11E

To determine

Introduction:

The over or under applied overhead is the difference between the overhead cost applied and the overhead cost actually incurred.
If the overhead cost applied is more than the overhead cost actually incurred, then it is called as over application of overhead.
If the actual overhead cost is more than the overhead cost applied, then it is called as under application of overhead.

To Determine:

Journal Entry to allocate over applied or under applied overhead to cost of goods sold