Badger LLC determines it’s manufacturing overhead rate for t…

Badger LLC determines it’s manufacturing overhead rate for the year based on the cost of direct labor. The estimated and actual costs for the year are outlined in the table below. What would the appropriate journal entry include to adjust for the amount of under/over applied manufacturing overhead?   Estimated Costs for Year Actual Costs for Year Manufacturing Overhead $500,000 $450,000 Direct Labor $800,000 $725,000