Queston 27 Rickman Corporation uses a job.cost system and applies manufacturing overhead to products on the machine hours. The company's accountant estimated that overhead and machinehou would 5.000.000 and 50.000, respectively, for 201. Actual costs incurred follow Direct Materials Used $250,000 Direct Labor 300.000 Manufacturing Overhead 816,000 The manufacturing overhead gure presented above excludes $27,000 of sales commissions incurred with hirm. An examination of Job-cost records revealed that 18 jobs were sold during the year at a total cost of $2.960,000. These goods were sold to customers for $3,720,000. Actual machine hours worked totaled 51,500 and Rickman adjusts under or overapplied overhead at year end to Cost of Goods Sold. Required: 1. The company's predetermined overhead rate is: $ 2. The company is (over/under) I -applied by $ 3. The adjusted cost of goods sold is: $ 4. After the adjustment gross margin is (larger/smaller) by $ MacBook Pro