Predetermined overhead rate, applied overhead and over/underapplied amounts Fairlane Company applied overhead to production using a predetermined overhead rate based on direct labor 3 hours. Budgeted data for 2025 Budgeted direct labor-hours O Budgeted manufacturing overhead Required a. Compute the predetermined overhead rate. POHR b. Assume that in 2025, actual manufacturing overhead amounted to $3,050,000, and 243,000 direct labor hours were used. Compute the amount overhead applied to work in process, and the underapplied or overapplied manufacturing overhead for 2025. 240,000 $ 3,000,000 $12.50 c. Prepare the journal entry to transfer underapplied or 3 overapplied overhead to Cost of Goods Sold.