Question 20 (of 20) The management of Hannan Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity rather than on the estimated amount of activity for the year. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 13,900 machine-hours. In addition, capacity is 16,000 machine-hours and the actual activity for the year is 12,500 machine-hours. All of the manufacturing overhead is fixed and is $29,130 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity and the actual amount of manufacturing overhead for the year Required: a. Determine the predetermined overhead rate if the predetermined overhead rate is based on the amount of the allocation base at capacity. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) per MH Predetermined overhead rate b. Determine the underapplied or overapplied overhead for the year if the predetermined overhead rate is based on the amount of the allocation base at capacity. (Round your intermediate calculation to 2 decimal places and final answer to the nearest whole dollar amount. Input your answer as a positive value. Omit the "$" sign in your response.) Manufacturing overhead (Click to select)