Martin Corp. applies overhead based on machine hours. Budgeted factory overhead is $275,000 and budgeted machine hours were 19,000. Actual factory overhead was $270,000 and actual machine hours were 19,100. Before disposition of under/overapplied overhead, cost of goods sold was $500,000 and ending inventories were as follows:

Direct materials50,000

WIP200,000

Finished Goods300,000

Total550,000

Determine the budgeted factory overhead rate per machine hour

Compute the over/underapplied overhead

Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach

Prepare the journal entry to dispose of the variance using the proration approach.