The following information pertains to Paramus Metal Works for the year just ended.

Budgeted direct-labor cost: 70,000 hours (practical capacity) at $16 per hour
Actual direct-labor cost: 80,000 hours at $17.50 per hour
Budgeted manufacturing overhead: $997,500
Budgeted selling and administrative expenses: $438,000
Actual manufacturing overhead:
Depreciation	$	234,000
Property taxes		22,000
Indirect labor		81,000
Supervisory salaries		202,000
Utilities		58,000
Insurance		33,000
Rental of space		302,000
Indirect material (see data below)		79,000
Indirect material:
Beginning inventory, January 1		47,000
Purchases during the year		95,000
Ending inventory, December 31		63,000 1. Compute the firms predetermined overhead rate, which is based on direct-labor hours. (Round your answer to 2 decimal places.) 2. Calculate the overapplied or underapplied overhead for the year. 3. Prepare a journal entry to close out the Manufacturing Overhead account into Cost of Goods Sold. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)