Savalas 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 g overhead cost 1.276,000 Variable manuflacturing overhead per computer-hour During the year, a severe economic recession resulted in cutting back production and a buildup of inventory in the company's warehouse. The companys records revealed the following actual cost and operating data for the year Manufacturing overhead cost 781.,000 S 420,000 120,000 1020,000 2,720,000 Finished goods Cost of goods sold 1. Compute the company's predetermined overhead rato for the year (Round predetermined overhead rate to 2 decimal places.) 2. Compute the underappliled or overapplied overhead for the year. (Round predetermined overhead rate to 2 decimal places) 5 6 7 3. Determine the cost of goods sold for the year after any adjustment for underapplied or overapplied overhead. (Round predetermined overhead rate to decimal places.) References Book& Resources Learming Objective: 04-01 Leaming Objective: 04-05 Use the direct method to detormine cost of goods sold Difficulty: 2 Medium 5 6 on command