eBook Predetermined Overhead Rate, Overhead Variances, Journal Entries 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 56,384,000, and the practical level of activity is 380,000 machine hours. During the year, Craigused 386,000 machine hours and incurred actual overhead costs of $6,394,800. Craig also had the following balances of applied overhead in its accounts: Work-in-process inventory Finished goods inventory Cost of goods sold 621,150 548,430 1,860,420 Required: 1. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cent. 16.80 per machine hour 2. Compute the overhead variance, and label it as under or overapplied 16.8 overagplied 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year. Coordsold 548,430 Finished goods inventory Cost of goods sold Required: 1,860,420 1. Computea predetermined overhead rate for Craig. Round your answer to the nearest cent. 16.80 per machine hour 2. Compute the overhead variance, and label it as under or overapplied 16.8 overapplied 3. Assuming the overhead Varance is material, prepare the journal entry to dispose of the variance at the end of the year, Costcode sold 4. Assuming the werhead race is material, prepare the journal entry that appropriately disposes of the overhead Variance at the end of the year it amount box does not require an entry vet blank lub llll