Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $6,278,000, and the practical level of activity is 365,000 machine hours.

During the year, Craig used 372,500 machine hours and incurred actual overhead costs of $6,337,000. Craig also had the following balances of applied overhead in its accounts:

Work-in-process inventory	$	560,280
Finished goods inventory		615,090
Cost of goods sold		1,869,630

Required:

1. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cent.

$fill in the blank fe4d6ff94fe1fe8_1 per machine hour

2. Compute the overhead variance, and label it as under- or overapplied. $fill in the blank fe4d6ff94fe1fe8_2

3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year.

		fill in the blank 001e05067f81fe2_2
			fill in the blank 001e05067f81fe2_4

4. Assuming the overhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the year. If an amount box does not require an entry, leave it blank.

		fill in the blank 274452ff0003fee_2	fill in the blank 274452ff0003fee_3
		fill in the blank 274452ff0003fee_5	fill in the blank 274452ff0003fee_6
		fill in the blank 274452ff0003fee_8	fill in the blank 274452ff0003fee_9
		fill in the blank 274452ff0003fee_11	fill in the blank 274452ff0003fee_12