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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 Step by Step Solution
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