Problem 4-20 Predetermined Overhead Rate; Disposition of Underapplied or Overapplied Overhead (L04-1, LO4-4, L04-5) Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of computer-hours The following estimates were used in preparing the predetermined overhead rate at the beginning of the year Computer-hours Fixed manufacturing overhead cost Variable manufacturing overhead per computer-hour $ 84,000 1,273,000 3.90 During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The company's cost records revealed the following actual cost and operating data for the year $ 40,000 823,000 Computer-hours Manufacturing overhead cost Inventories at year-end Raw materials Work in process Finished goods Cost of goods sold $ $ $ $ 440.000 180.000 1,030.000 2.780.000 Required: 1. Compute the company's predetermined overhead rate for the year. (Round predetermined overhead rate to 2 decimal places.) Overhead rate per computer hour 2. Compute the underapplied or overapplied overhead for the year (Round predetermined overhead rate to 2 decimal places.) 2. Compute the underapplied or overapplied overhead for the year. (Round predetermined overhead rate to 2 decimal places.) 3. Determine the cost of goods sold for the year after any adjustment for underapplied or overapplied overhead (Round predetermined overhead rate to 2 decimal places.)