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 87,000 Fixed manufacturing overhead cost $ 1,279,000 Variable manufacturing overhead per computer-hour $ 3.60 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 40,000 Manufacturing overhead cost $ 798,000 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.) 3. Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate calculations to 2 decimal places.)