Job Order Costing: Wadadli Products uses a job-order costing system Overhead costs are applied to jobs on the basis of machine-hours. At the beginning of the year, management estimated that 170,000 machine-hours would be required for the periods estimated level of production. The company also estimated $212,500 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $1.50 per machine hour. Required: 1. Compute the companys predetermined overhead rate. 2. Assume that during the year of the company actually works only 160,000 machine-hours and incurs the following costs in the Manufacturing overhead and Work in Process accounts: Manufacturing Overhead Utilities 28,000 ? Insurance 18,000 Maintenance 66,000 Indirect Materials 14,000 Indirect Labor 130,000 Depreciation 80,000 Work in Process Direct Materials 1,060,000 Direct Labor 170,000 Overhead ? Copy the data in the T-accounts above onto your answer sheet. Compute the amount of overhead cost that would be applied to Work in Process for the year, and the make the entry in your T-accounts. 3. Compute the amount of underapplied or overapplied overhead for the year and the show the balance in your manufacturing overhead T- account. Prepare a journal entry to close out the balance this account to Cost of Goods Sold. 4. Explain why Manufacturing Overhead was underapplied or overapplied for the year.