Josie Corporation makes bottles using the latest automated technology. The company applies Factory Overhead cost to products on the basis of machine hours. The following are estimates used to determine the factory overhead rates at the start of the year.

Machine Hours	150,000
Factory Overhead Cost	1,800,000

The company cost records show the following actual cost incurred for the year.

Machine Hours	120,000
Factory Overhead Cost	1,700,000
Raw Materials	60,000
Work in Process (includes Factory Overhead applied of 72,000)	200,000
Finished Goods (includes Factory Overhead applied of 360,000)	1,000,000
Cost of Goods Sold (includes Factory Overhead applied of 1,008,000)	2,800,000

• Compute the Factory Overhead rate.
• Computer the under or over-applied Factory Overhead.
• Assume the variance is material, what is the adjustment of the Cost of Goods Sold?
• Assume the variance is material, what is the variance share of the Finished Goods Inventory account?
• Assume the variance is material, what is the variance share of the Work in Process account?