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\mathrm{.}7$ million, and the practical level of activity is $375,000$ machine hours.

During the year, Craig used $382,500$ machine hours and incurred actual overhead costs of $$5\mathrm{.}73$ million. Craig also had the following balances of applied overhead in its accounts:

$\backslash$table$[[$Work$-$in$-$process inventory,$$576,000$