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 $4,950,000, and the practical level of activity is 375,000 machine hours. During the year, Craig used 381,500 machine hours and incurred actual overhead costs of $4,947,800. Craig also had the following balances of applied overhead in its accounts: 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. $ 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year