E 2-5 Applying Manufacturing Overhead Chris Company has four manufacturing subsidiaries (listed below). Each subsidiary keeps a separate set of accounting records. Manufacturing cost forecasts for 20X1 for each subsidiary are: The predetermined overhead rates for each subsidiary are based on the following: 1. Compute the predetermined overhead rate to be used in 201 by each subsidiary. 2. If the Fresno Subsidiary actually had $4,000 of direct labor costs and $15,750 of manufacturing overhead, will overhead be over- or underapplied and by how much? 3. If the Kings Subsidiary used 33,000 pounds of materials in 201, what will be the applied manufacturing overhead? 4. Interpretive Question: Identify the two most commonly used methods to dispose of under- or overapplied manufacturing overhead. What is the major advantage of each method