Shevaneh Company uses a normal job-order cost system. Budgeted overhead for the com¬

ing year is $950,000. Expected actual activity is 250,000 direct labor hours. During the year, Shevaneh worked a total of 243,000 direct labor hours and actual overhead totaled

$920,000.

Required:

1. Compute the predetermined overhead rate for Shevaneh Company.

2. How much overhead will the company assign to the work in process account? Prepare the journal entry that corresponds to this assignment.

3. Compute the overhead variance and label the variance as under- or overapplied over¬

head. Assuming the variance is not material, write the journal entry that disposes of the variance at the end of the year.