Nilson Co. estimates its predetermined overhead rate annually on the basis of machine-hours. At the beginning of the year, it estimated that 90,000 machine hours would be required for the period's estimated level of production. The company also estimated $ 540,000 of manufacturing overhead expenses for the coming period. At the end of January, actual manufacturing overhead for the month was $ 123,000 and its actual machine-hours was 20,000 hours. Required: 1- Compute the company's predetermined overhead rate for the year 2- Compute the manufacturing overhead applied for January