2. Holly Company has decided to use a predetermined rate to assign factory overhead to production. The following predictions have been made for 2024: Estimate total factory overhead costs 540,004 Estimate direct labor hours 100,000 DLH Estimate direct labor costs 270,000 Estimate maching hours B0,000 MH Actual direct labor hours 104,000 DLH Actual direct labor costs 5300,000 Actual machine hours g4.000 MH Rexquired: a. Compute the predetermined factory overhead rate under three different bases: (1) direct labor hours, (2) direct labor costs, and (3) machine hours. {(Round amounts to 2 decimal places.) b. Assume that actual factory overhead was $560,000 and that Holly Company elected to apply factory overhead to Work in Process based on machine hours. i. Was factory overhead or 2024 over- or under-applied? How much? ii. Give the journal entry to record the application of overhead. . Holly Company follows the policy of writing off any under- or over-applied Factory Overhead balance to Cost of Goods Sold at the end of the year, Give the journal entry necessary at the end of 2024 to dispose of the Factory Owerhead balance determined in Part (b)