FACTS: Samer Corp. uses a job order cost accounting system. The following is selected information pertaining to costs applied to jobs during the year. Jobs still in process at the end of the year: $167,000, which includes $65,000 direct labor costs. Jobs finished and sold during the year: $395,000, which includes $172,000 direct labor costs. Jobs finished but unsold at end of the year: $103,000, which includes $38,000 direct labor costs. Samer Corp.'s predetermined overhead allocation rate is 60% of direct labor cost. At the end of the year, the company's records show that $189,000 of factory overhead has been incurred. REQUIRED: 1. Determine the amount of over applied or under applied overhead. 2. Prepare the necessary journal entry to close the Factory Overhead account assuming that any remaining balance is not material.