2. Schaefer Corp.'s cost accountant thinks that machine hours are the best activity base for applying its factory overhead cost. Schaefer had an actual factory overhead cost balance of $26,600 during the accounting period. Job #61 was the only job in work in process inventory, and it used 200 machine hours. The expected machine hours for the year totaled 2,400 machine hours. At the end of the accounting period, the factory overhead account had an under-applied (debit) balance of $1,280. a) Calculate Schaefer's Predetermined Factory Overhead Rate. b) Calculate Schaefer's total estimated factory overhead cost for the year