Fanning, Inc. estimates manufacturing overhead costs for the Year 3 accounting period as follows.

Equipment depreciation	$	191,900
Supplies		19,500
Materials handling		32,900
Property taxes		13,900
Production setup		20,000
Rent		44,200
Maintenance		38,300
Supervisory salaries		228,800

The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in Year 3 were 213,000 and for machines were 131,000. Required

1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

2. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the Year 3 period if actual machine hours were 146,000. (Do not round intermediate calculations.) a.Predetermined overhead rate per machine hour b.Applied manufacturing overhead