Dodge Products uses a job-costing system for its units, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The following information relates to the Machining Department for the year just ended: budgeted manufacturing overhead $12,000,000

actual manufacturing overhead $12,142,000

budgeted machine hours 800,000

actual machine hours 794,000

The Machining Department data that follow pertain to job no. 775, the only job in production at year-end. direct materials $125,000

dircet labor cost $61,800

machine hours 550

Required: A. Assuming the use of normal costing, calculate the predetermined overhead rate that is used in the Machining Department. B. Compute the cost of the Machining Department's year-end work-in-process inventory. C. Determine whether overhead was under- or overapplied during the year in the Machining Department. D. If Dodge disposes of the Machining Department's under- or overapplied overhead as an adjustment to Cost of Goods Sold, would the company's Cost-of-Goods-Sold account increase or decrease? Explain.