Predetermined Overhead Rate; Disposition of Under applied or Over applied Overhead [LO2-1, LO2-7] Luzadis Company makes furniture using the latest automated technology. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of machine-hours. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year. During the year, a glut of furniture on the market resulted in cutting back production and a buildup of furniture in the company's warehouse. The company's cost records revealed the following actual cost and operating for the year: Required: Compute the company's predetermined overhead rate. Compute the under applied or over applied overhead. Assume that the company closes any under applied or over applied overhead directly to Cost of Goods Sold. Prepare the appropriate journal entry