Medusa products uses a job-order costing system. Overhead costs are applied to jobs on the basis of machine -hours.

Predetermined Overhead Rate; Applying Overhead; Underapplied or Overapplied Overhead [LO 4-1, LO 4-2, LO 4-4] Medusa Products uses 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 work 85,000 machine-hou year Required rs and incur $170,000 in manufacturing overhead costs for the 1. Compute the company's predetermined overhead rate 2. Assume that during the year the company actually worked only 80,000 machine-hours and incurred $168,000 of manufacturing overhead costs. Compute the amount of underapplied or overapplied overhead for the year. 3. Explain why the manufacturing overhead was underapplied or overapplied for the year. 2 assume that during he year he company actualy worked only 80.oo0 Explain why the manufacturing overhead was