Maxi Manufacturing uses a job order cost accounting system that charges overhead to jobs on the basis of direct labor cost. Whittier used the following cost predictions: overhead costs $1,365,000, and direct labor costs of $765,000. At year-end, the companys records show that actual overhead costs for the year are $1,350,000, and actual direct labor costs are $758,900.

a. Determine the predetermined overhead rate for the year.

b. Compute the amount of overapplied or underapplied overhead.

c. Prepare the adjusting entry to allocate the over- or underapplied overhead assuming the amount if immaterial.