Gitano Products uses job$-$order costing and applies overhead cost to jobs based on direct materials used in production $($not on the basis of raw materials purchased$).$ Its predetermined overhead rate is based on a cost formula that estimated $$117,600$ of manufacturing overhead for an estimated allocation base of $$84,000$ direct material dollars to be used in production. The company provided the following data for the just completed year:

Required:

Compute the predetermined overhead rate.

Compute the amount of underapplied or overapplied overhead.

Prepare a schedule of cost of goods manufactured. Assume all raw materials are used in production as direct materials.

Compute the unadjusted cost of goods sold. Do not include any underapplied or overapplied overhead in your answer:

Assume the $$35,000$ ending balance in Work in Process includes $$8,700$ of direct materials. Given this assumption, supply the information missing below:

Answer is not complete.

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Required $5$

Compute the predetermined overhead rate.

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Predetemined overhead rate