overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the Work-i inventory Cost of goods sold 242 PM 4/16/2019 eBook Calculato Required: per machine hour 2. the d variance, and label it as under- or overapplied. 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year. 4. Assuming the overhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the year. If an amount box does not require an entry, leave it blank. 243 PM