Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $129,000 of manufacturing overhead for an estimated allocation base of $86,000 direct material dollars to be used in production. The company has provided the following data for the just completed year $133,000 Purchase of raw materials 82,000 Direct labor cost Manufacturing overhead costs: $140,900 Indirect labor Property taxes 9,000 17,000 Depreciation of equipment 12,000 Maintenance 10,300 Insurance 30,000 Rent, building Beginning Ending 21,000 10,000 Raw Materials 45,000 37,000 Work in Process 69,000 59,000 Finished Goods Required: 1-a. Compute the predetermined overhead rate for the year. Predetermined overhead rate 1-b. Compute the amount of underapplied or overapplied overhead for the year. overhead