The shotz company had the following transactions and events during its first year of operations. estimated overhead for the year was $770,000; estimated direct labor cost for the year was $350,000. purchased materials on account, $567,000. requisitioned materials for production as follows: direct materials - 85 percent of purchases, indirect materials - 12 percent of purchases. direct labor for production is $331,000, indirect labor is $125,000. overhead incurred (not including materials or labor): $529,000. overhead is applied to production based on direct labor cost at the rate of
goods costing $976,000 were completed during the period. goods costing $513,200 were sold on account for $776,000.

required:

(a) calculate the overhead rate.
(b) prepare the journal entries to record the transactions for the year.
(c) prepare the journal entry to prorate the over- or underapplied overhead to the appropriate accounts.