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		85,000
Fixed manufacturing overhead cost	$	1,273,000
Variable manufacturing overhead per computer-hour	$	3.50

During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the companys warehouse. The companys cost records revealed the following actual cost and operating data for the year:

Machine-hours		60,000
Manufacturing overhead cost	$	1,209,000
Inventories at year-end:
Raw materials	$	410,000
Work in process (includes overhead applied of 66,528)	$	120,000
Finished goods (includes overhead applied of 243,936)	$	1,040,000
Cost of goods sold (includes overhead applied of 798,336)	$	2,800,000

Required:

1.	Compute the companys predetermined overhead rate for the year.(Round your answer to 2 decimal places.)

2.	Compute the underapplied or overapplied overhead for the year.(Round your intermediate calculations to 2 decimal places.)