Erkens Company uses a job costing system with normal costing and applies factory overhead on the basis of machine hours. At the beginning of the year, management estimated that the company would incur $2,046,000 of factory overhead costs and use 62,000 machine hours. Erkens Company recorded the following events during the month of April: a. Purchased 218,000 pounds of materials on account; the cost was $5.30 per pound.
b. Issued 139,000 pounds of materials to production, of which 24,500 pounds were used as indirect materials.
c. Incurred direct labor costs of $335,000 and $59,000 of indirect labor costs.
d. Recorded depreciation on equipment for the month, $79,500.
e. Recorded expired insurance costs for the manufacturing property, $5,400. Paid $10,400 cash for utilities and other miscellaneous items for the manufacturing plant.
g. Completed Job H11 costing $9,400 and Job G28 costing $86,500 during the month and transferred them to the Finished goods inventory account.
h. Shipped Job G28 to the customer during the month. The job was invoiced at 30% above cost.
i. Used 11,500 machine hours during April.

Required:
1. Compute Erkens Companyâs predetermined overhead rate for the year.
2. Prepare journal entries to record the events that occurred during April.
3. Compute the amount of overapplied or underapplied overhead and prepare a journal entry to close overapplied or underapplied overhead into cost of goods sold on April 30.