Kody Corporation uses a job-order costing system with a plantwide overhead rate based on machine-hours. At the beginning of the year, the company made the following estimates: Machine-hours required to support estimated production 150,000 Fixed manufacturing overhead cost $750,000 Variable manufacturing overhead cost per machine-hour $4.00 Required: 1. Compute the predetermined overhead rate. 2. During the year Job 500 was started and completed. The following information was available with respect to this job: Direct materials requisitioned $350 . Direct labor cost $230 Machine-hours used 30 Compute the total manufacturing cost assigned to Job 500. 3-a During the year the company worked a total of 147,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,325,000. What is the amount of underapplied or overapplied overhead for the year? 3-b If this amount were closed out entirely to cost of goods sold, would the journal entry increase or decrease net operating income? a) Increase b) Decrease