Problem 2-25A Schedule of Cost of Goods Manufactured; Overhead Analysis [LO2-1, LO2-2, LO2-3, LO2-6, LO2-7 Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $800,000 of manufacturing overhead for an estimated allocation base of $500,000 direct material dolars to be used in production. The company has provided the following data for the just completed year Purchase of raw materials Direct labor cost Manufacturing overhead costs: $ 510,000 $ 90,000 170,000 Indirect labor Property taxes Depreciation of equipment $48,000 s 260,000 95,000 7000 180,000 Insurance Rent, building Raw Materials Work in Process Finished Goods 20,000 $ 80,000 150,000 $ 70,000 260,000 $ 400,000 Required: 1-a. Compute the predetermined overhead rate for the year 1-b. Compute the amount of underapplied or overapplied overhead for the year