Budgeted factory overhead of SOLANO Corp. was $399,600 and the budgeted machine-hours were 27,750. Actual factory overhead was $431,880 and actual machine-hours were 28,575. Solano Corporation applies overhead based upon machine-hours. Before disposition of under/overapplied overhead, the cost of goods sold was $840,000 and ending inventories were as follows:

Direct materials$ 90,000

WIP285,000

Finished goods375,000

Total$750,000

Required:

a.Determine the budgeted factory overhead rate per machine-hour.(3%)

b.Compute the over/underapplied overhead.(4%)

c.Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach.(4%)