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 $6,384,000, and the practical level of activity is 380,000 machine hours During the year, Craig used 386,000 machine hours and incurred actual overhead costs of $6,394,800, Craig also had the following balances of applied overhead in its accounts: Work in process inventory Finished goods inventory Cost of goods sold Required: $621,150 548,430 3,860,420 1. Compute a predetermined overhead rate for Craig, Round your answer to the nearest cont. per machine hoor 2. Compute the overhead Variance, and tabel it as under or overapplied. 3. Assuming the overhead vanance in material, prepare the journal entry to dispose of the variance at the end of the year