Part 4: POHR, Applied Overhead, COGM-30 Points On January 1, the Knicks Company determined that the estimated manufacturing overheac cost for 2017 will be $2,000,000. They also estimated that they will use 100,000 direct labor hours for their production process for 2017. On December 31, 2017, they must determine if they are in an over/under applied position with regards to their overhead. The review of all the Job Costing Sheets from the year reveals that their allocation base totals (Direct Labor Hours Used) were equal to their projections. The actual manufacturing overhead costs was $1,500,000 Additional Data for 2016: Depreciation Expense, Office Equipment Depreciation Expense, Factory Equipment Supplies, Factory Maintenance, Factory Equipment Utilities, Factory Executive Salaries Indirect Labor Rent, Factory Buildings Rent Corporate Headquarters Additional Raw Materials Purchased Direct Labor Cost Advertising Expense Beginning Work-in-Process Ending Work-in-Process Beginning Finished Goods Ending Finished Goods Beginning Raw Material Inventory Ending Inventory of Raw Materials Added Raw Materials Purchased S 20,000 80,000 1,000 20,000 5,000 100,000 50,000 70,000 100,000 112,000 70,000 60,000 5,000 15,000 60,000 20,000 30,000 10,000 50,000 Required: Determine the Pre-Determined Overhead Rate used by the firm during the 2017. Accounting Cycle. 6 points a