Garcia, Inc., uses a job$-$order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished$-$goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual$-$assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct$-$labor cost in the Assembly Department. The following information relates to the year just ended:

Machining Department Assembly Department

Budgeted manufacturing overhead $ $4,000,000$ $ $3,136,000$

Actual manufacturing overhead $4,270,0003,030,000$

Budgeted direct$-$labor cost

$($based on practical capacity$)1,500,0005,600,000$

Actual direct$-$labor cost $1,450,0005,780,000$

Budgeted machine hours

$($based on practical capacity$)400,000100,000$

Actual machine hours $425,000110,000$

The data that follow pertain to job no$.775,$ the only job in production at year$-$end.

Machining Department Assembly Department

Direct material $ $23,500$ $ $6,800$

Direct labor $ $27,900$ $ $58,600$

Machine hours $360150$

Selling and administrative expense amounted to $$2,500,000.$

Required:

$1.$ Assuming the use of normal costing, determine the predetermined overhead rates used in the Machining Department and the Assembly Department. $2.$ Compute the cost of the company$$s year$-$end work$-$in$-$process inventory. $3.$ Determine whether overhead was under$-$ or overapplied during the year in the Machining Department. $4.$ Determine whether overhead was under$-$ or overapplied during the year in the Assembly Department.