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 $5,990,600, and the practical level of activity is 389,000 machine hours. During the year, Craig used 395,000 machine hours and incurred actual avortead costs of $6,008,400. Craig also had the following balances of applied averhead in its accounts: Work-in-process inventory $ 591,000 Finished goods inventory 537,810 Cost of goods sold 1,826,1on Required: 1. Compute a predetermined overhead rate for Craig. Round your answer to the nearest cont. $ 15.41 X per machine hour 2. Compute the overhead variance, and label it as under or overapplied 94,320 X overapplied Foudupi Check My Work 1. Predetermined OH rate - Budgeted annual overhead - Budgeted annual driver level 2. Calculate over- or underapplied by subtracting Applied OH from Actual OH 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year. Overhead control N.120 x Cost of goods sold 420 X Teachers C Mp Work 3. If an overhead variance is immaterial, it is assigned to cost of goods sold. 4. Assuming the averhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the year. If an amount bax does not require an entry, leave it blank. Overhead control 94.820 X Work-in-process inventory - 18,564x Finished goods inventory 17,16 x Cost of goods sold SR.249.76x Feedback Chisky War 4. If an overhead variance is material, it is allocated among work-in-process inventory, finished goods invertory, and cost of goods sold