HW 04.20 Ka-Fon-Puppies For Sale Longue, for Animal Weitam- tpx? 0.3992688735807143 1520481212687 Problem 4-20 Predetermined Overhead Rate: Disposition of Underapplied or Overapplied Overhead L04-1, LO4-4, LO4- 5) Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year: Fixed manufacturing overhead cost Variable manufacturing overhead per computer-hour 89,000 1,270,000 3.60 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year: 40,000 S 761,000 Computer-hours Manufacturing overhead cost Inventories at year-end: Raw materials Work in process Finished goods Cost of goods sold $ 410,000 $ 130,000 S 1,020,000 2,730,000 Required: 1. Compute the company's predetermined overhead rate for the year. (Round predetermined overhead rate to 2 decimal places.) rate