The Ilarion Manufacturing Company operates a job-order costing system and applies overhead cost to jobs on the basis of direct labor cost. Its predetermined overhead rate was based on a cost formula that estimated $117,000 of manufacturing overhead for an estimated allocation base of $90,000 direct labor dollars. The company has provided the following data in the form of an Excel worksheet: Beginning Ending Raw Materials $29,000 $1 1,000 Work in Process 45,000 36,000 Finished Goods 71,000 61,000 T he following actual costs were incurred during the year: Purchase of raw materials (all direct) $130,000 Direct labor cost $86,000 Manufacturing overhead costs: Insurance, factory $8,800 Depreciation of equipment $17,000 Indirect labor $32,700 Property taxes $8,500 Maintenance $ 13 ,000 Rent, building $36,000 Required: 1. a. Compute the predetermined overhead rate for the year. b. Compute the amount of underapplied or overapplied overhead for the year