E2-7 (Static) Calculating Overhead Rates, Actual and Applied Manufacturing Overhead, and Analyzing Over-or Underapplied Manufacturing Overhead [LO 2-3, 2-5) Cambridge Manufacturing Company applles manufacturing overhead on the basis of machine hours. At the beginning of the year the company estimated its total overhead cost to be $325,000 and machine hours to be 25,000 Actual manufacturing overhead and machine hours were $372,000 and 26,000, respectively. Required: 1. Compute the predetermined overhead rate 2. Compute applied manufacturing overhead 3. Compute over or underapplied manufacturing overhead