Hanna Co. computes its predetermined overhead rate annually on the basis of direct labour-hours. At the

beginning of the year, it is estimated that its total manufacturing overhead would be $586,000 and the total

direct labour would be 40,000 hours. Its actual total manufacturing overhead for the year was $713,400

and its total direct labour was 41,000 hours

Required

a) Compute the company's predetermined overhead rate for the year.

b) Calculate the total overhead applied and determine the amount of underapplied overhead in the

year

c) Given the ending balances, show the adjusting journal entry to clear out the manufacturing overhead overhead control account at the end of the year.
	Work in progress		$452,000
	Finished goods		198,000
	Cost of goods sold		2,543,000
			$3,193,000 d) Provide a viable explanation as to why the overhead was underapplied throughout the year.