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 82,000

Fixed manufacturing overhead cost $ 1,279,000

Variable manufacturing overhead per computer-hour $ 3.70

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 50,000

Manufacturing overhead cost $ 1,042,000

Required:

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

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