Duggan Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $329,940 for the year, and machine usage is estimated at 126,900 hours. For the year, $346,490 of overhead costs are incurred and 131,400 hours are used. Compute the manufacturing overhead rate for the year. (Round answers to 2 decimal places, e.g. 1.25.) What is the amount of under- or over applied overhead at December 31? Prepare the adjusting entry to assign the under- or over applied overhead for the year to cost of goods sold. (Credit account titles are automatically indented when amount entered. Do not indent manually.)