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 $5,820,000, and the practical level of activity is 388,000 machine hours. During the year, Craig used 394,500 machine hours and incurred actual overhead costs of $5,833,500. Craig also had the following balances of applied overhead in its accounts: Work-in-process inventory $ 586,245 Finished goods inventory 504,900 Cost of goods sold 1,713,855 Required: Question Content Area 1. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cent. $fill in the blank 66f5cdf9f069013_1 per machine hour 2. Compute the overhead variance, and label it as under- or overapplied. $fill in the blank 66f5cdf9f069013_2 Feedback Area Feedback 1. Predetermined OH rate = Budgeted annual overhead Budgeted annual driver level 2. Calculate over- or underapplied by subtracting Applied OH from Actual OH Question Content Area 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year. blank Overhead control Cost of goods sold Feedback Area Feedback 3. If an overhead variance is immaterial, it is assigned to cost of goods sold. Question Content Area 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. blank Overhead control Overhead control Work-in-process inventory Work-in-process inventory Finished goods inventory Finished goods inventory Cost of goods sold Cost of goods sold Feedback Area