Abc Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $292,500 and budgeted machine-hours were 19,500. Actual factory overhead was $287,920 and actual machine-hours were 19,050. Before disposition of under/overapplied overhead, the cost of goods sold was $560,000 and ending inventories were as follows: Direct materials $ 60,000 WIP 190,000 Finished goods 250,000 Total $500,000 Instructions: 1. Determine the budgeted factory overhead rate per machine-hour. 2. Compute the over/underapplied overhead. 3. Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. 4. Prepare the journal entry to dispose of the variance using the proration approach