practical level of activity is 388,000 machine hours. During the year, Craig used 394,000 machine hours and incurred actual overhead costs of $5,759,200. Craig also had the following balances of applied overhead in its accounts: 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. $ 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year