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

Budgeted direct-labor cost: 77,000 hours (practical capacity) at $17 per hour Actual direct-labor cost: 79,000 hours at $18 per hour
Budgeted manufacturing overhead: $993,300

Budgeted selling and administrative expenses: $417,000 Actual manufacturing overhead:

Depreciation                                    $225,000
Property taxes                                 19,000
Indirect labor                                   79,000
Supervisory salaries                         210,000
Utilities                                           58,000
Insurance                                       32,000
Rental of space                               295,000
Indirect material                              79,000
Indirect material:
Beginning inventory, January 1         46,000
Purchases during the year                95,000
Ending inventory, December 31        62,000

Required:

1. Compute the firm's predetermined overhead rate, which is based on direct-labor hours.

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.

4. Build a spreadsheet: Construct an Excel spreadsheet to solve requirements (1) and (2) above. Show how the solution will change if the following data change: budgeted manufacturing overhead was $990,000, property taxes were $25,000, and purchases of indirect material amounted to $97,000.