Luzadis Company makes furniture using the latest automated technology The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per computer-hour 83,000 $1,271,000 320 During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year Machine-hours 50,000 S 1,000,000 Manufacturing overhead cost Inventories at year-end Raw materials Work in process (includes overhead applied of 55,530) Finished goods (includes overhead applied of 277,650) S 400,000 S 140,000 S 1,020,000 S 2,750,000 Cost of goods sold (includes overhead applied of 592,320) Required 1. Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Prodatermined overhead rate per hour 2 Compute the underapplied or overapplied overhead for the year. (Round your intermediate calculations to 2 decimal places.)