Savallas Company is highly automated and uses computers to control manufacturing

Savallas 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:During the year a severe economic recession resulted in cutting back production and a buildup of inventory in the companys warehouse. The companys cost records revealed the following actual cost and operating data for the year:Compute the companys predetermined overhead rate for the year.Compute the underapplied or overapplied overhead for the year.(Input the amount as a positive value.)Assume the company closes any underapplied or overapplied overhead directly to Cost of Goods Sold. Prepare the appropriate journalentry.