A company uses a job order cost system with manufacturing overhead applied to products on the basis of machine hours. For the upcoming year, the company estimated total manufacturing overhead cost of $333,500 and total machine hours of 46,000. During the year actual manufacturing overhead incurred was $323,680 and 47,600 machine hours were used.

Required:

1. Calculate the predetermined overhead rate.
2. Calculate how much manufacturing overhead will be applied to production.
3. Is overhead over- or underapplied? By how much?
4. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased?

Complete this question by entering your answers in the tabs below. Calculate the predetermined overhead rate. Note: Round your answer to 2 decimal places. Complete this question by entering your answers in the tabs below. Calculate how much manufacturing overhead will be applied to production. Complete this question by entering your answers in the tabs below. Is overhead over- or underapplied? By how much? Note: Input the amount as positive value. Complete this question by entering your answers in the tabs below. What account should be adjusted for over- or underapplied overhead? Should the balance be increased or decreased