Speedy Delivery, Inc, t equipment for various computer manufacturers speedy applies overhead to jobs using a predetermined overhead rate based on truck miles estimated data for 2010 are.

estimated truck miles 20 million.

estimated overhead for hawing operations.

(Equivalent to manufacturing overhead)

$ 12 million

1) compute the predetermined overhead rate per mile

2) assume that in 2010 actual manufacturing overhead for hauling operations amounted to $15 million and 24 million truck miles were driven compute the amount of underapplied or overapplied manufacturing overhead for 2010

3) prepare the journal entry to transfer underapplied or overapplied overhead to cost of goods sold