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A business estimates that factory overhead costs will be $350,000 and direct labor costs will be $175,000 for 2019

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A business estimates that factory overhead costs will be $350,000 and direct labor costs will be $175,000 for 2019. The business uses direct labor cost to apply factory overhead to products. The actual direct labor costs for 2019 are $190,000 and the actual factory overhead costs are $395,000. Prepare the entry to close the over or under applied overhead to cost of goods sold.