Ikerd Company applies manufacturing overhead to jobs on the basis of machine hours used. Overhead costs are expected to total $310,479 for the year, and machine usage is estimated at 125,700 hours. For the year, $361,123 of overhead costs are incurred and 130,900 hours are used.

Compute the manufacturing overhead rate for the year.

What is the amount of under- or overapplied overhead at December 31?

Prepare the adjusting entry to assign the under- or overapplied overhead for the year to cost of goods sold.