Medusa Products is a manufacturing company that operates a job-order costing system Overhead costs are applied to jobs on the basis of machine-hours At the beginning of the year, management estimated that the company would incur $170,000 in manufacturing overhead costs for the year and work 85,000 machine-hours. Required: 1 Compute the company's predetermined overhead rate. 2. (Utilities) Predetermined Overhead Rate= Assume that during the year the company actually works only 80,000 machine-hours and incurs the following costs in the Manufacturing Overhead and Work in Process accounts Manufacturing Overhead 14,000) (Insurance) 9,000 (Maintenance) 33,000 (Indirect materials 7,000 (Indirect labor) 65,000 (Depression) 40,000 (Direct Materials) (Direct Labor) 530,000 $5,000 (Overhead) Work in Process Compute the amount of overhead cost that would be applied to Work in Process for the year, and prepare the journal entry. Also post the amount to the T-accounts above. Debit Account Credit Account Amount Amount 3 Compute the amount of under-or-overapplied overhead (indicate if it is under or over-applied) for the year, and show the balance in your Manufacturing Overhead T-account Prepare a journal entry to close out the balance in this account to Cost of Goods Sold Debit Account Credit Account Amount Amount 4 Explain why the manufacturing overhead was underapplied or overapplied for the year.