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: 87,000 1,272,000 Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per computer-hour $ 3.40 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 Manufacturing overhead cost 50,000 $964,000 Required: 1. Compute the company's predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Predetermined overhead rate per hour 2. Compute the underapplied or overapplied overhead for the year. (Round your intermediate calculations to 2 decimal pla ces.)