Franklin Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct labor cost. Franklin used the following cost predictions: overhead costs $1,285,750, and direct labor costs of $695,000. At year-end, the company's records show that actual overhead costs for the year are $1,278,800, and actual direct labor costs are $692,000. 1. Determine the predetermined overhead rate for the year. 2. Compute the amount of overapplied or underapplied overhead. 3. Prepare the adjusting entry to allocate the over- or underapplied overhead assuming the amount is immaterial