Problem 2 Sullivan Company applied overhead to production using a predetermined overhead rate based on machine-hours, Budgeted data is: Budgeted machine-hours 85,000 Budgeted manufacturing overhead $920,000 Required: a. Compute the predetermined overhead rate (round to the nearest cent, if necessary) b. Assume actual manufacturing overhead amounted to $930.000, and 86,000 machine-hours were used. Compute the amount of underapplied or overapplied manufacturing overhead and prepare the journal entry to transfer underapplied or overapplied overhead to Cost of Goods Sold. Hint? a) POHR- b) Applied OH - Self Check Applied OH Actual OH Difference Over or under applied? Over-or Under applied overhead is not a self check item c) Adjusting entry: Debit Hint? Hint? Hint? Hint? Credit