2. The llarion Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $124,800 of manufacturing overhead for an estimated allocation base of $96,000 direct labor dollars. The company has provided the following data. Inventories Raw materials Work in process Finished goods Beginning Ending $ 46,000 $ 19,500 62,000 $ 44,500 88,000 69,500 The following actual costs were incurred during the year Purchase of raw materials (all direct) Direct labor cost Actual manufacturing overhead costs 147,000 $ 99,000 Insurance, factory Depreciation of equipment Indirect labor Property taxes Maintenance Rent, building 10,500 $ 18,700 34,400 10,200 $ 21,500 44,500 Required: 1-a. Compute the predetermined overhead rate for the year. redetermined overhead rate % of direct labor cost 1-b. Compute the amount of underapplied or overapplied overhead for the year. overhead