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 86,600 machine-hours and incur $242,480 in manufacturing overhead costs for the year. Required: 1. Compute the company's predetermined overhead rate. (Round your answer to 2 decimal places.) Predetermined overhead rate per MH 2. Assume that during the year the company actually worked only 80.800 machine hours and incurred $238.000 of manufacturing overhead costs. Compute the amount of underapplied or overapplied overhead for the year (Round your intermediate calculation to 2 decimal places.)