Over$-$ or Underapplied Factory Overhead; Predetermined Rates; Activity Levels;Disposition of Underapplied Amount. Amalgamated Machining is a sheet$-$metal fabriator. The company's total factory overhead costs are a linear function of machine usage. The company's theoretical capacity is $25,000$ machine hours $($MH$)$ per year, practical capacity is $15,000$ MH per year, and normal capacity is $8,000$ MH per year; $10,000$ MH were expected to be the actual activity for the year just ended.At the beginning of each year, the company budgets the expected actual factory overhead costs for the coming year and divides it by the budgeted $($expected actual$)$ MH for the coming year. The result is the predetermined factory overhead rate.Actual activity in the year just ended was $9,500$ MH and budgeted factory overhead costs were $$3,500,000.$ The factory overhead budget would be $$3,000,000$ at normal capacity. Actual factory overhead costs for the year totaled $$3\mathrm{.}470,000.$Required:$(1)$ Calculate the amount of over$-$ or underapplied factory overhead for the year just ended.$(2)$ If the company had used practical capacity as the activity level in its predetermined overhead rate calculation for the year just ended, what would have been the predeter$-$ mined overhead rate per MH$?($Calculate to two decimal places, and assume the practical capacity level of activity is within the relevant range.$)(3)$ Without influencing your answer to requirement $1,$ now assume factory overhead was underapplied by $$10,000.$ Give the end$-$of$-$period entries to close Applied Factory Overhead to Factory Overhead Control and to close Factory Overhead Control to Cost of Goods Sold.