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need help eBook Calculator Predetermined Overhead Rate, Overhead Variances, Journal Entries Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's

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eBook Calculator 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 $6,438,000, and the practical level of activity is 370,000 machine hours. During the year, Craig used 377,500 machine hours and incurred actual overhead costs of $6,478,500. Craig also had the following balances of applied overhead in its accounts: Work-in-process inventory $ 516,600 Finished goods inventory 525,210 Cost of goods sold 1,828,190 Required: 1. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cent. per machine hour 2. Compute the overhead variance, and label it as under or overapplied overapplied

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