Cambridge Manufacturing Company applies manufacturing overhead on the basis of machine hours. At the beginning of the year, the company estimated its total overhead cost to be $500,000 and machine hours to be 30,000. Actual manufacturing overhead and machine hours were $400,000 and 32,000 hours respectively. You must show your computations for credit. 1. Compute the predetermined rate 2. Compute applied MOH 3. Compute over or underapplied MOH