Predetermined Overhead Rate, Overhead Variances, Journal Entries Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craio's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was $5,175,000, 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 55,194,500, Craig also had the following balances of applied overhead in its accounts: Work in process inventory $633,600 Finished goods inventory 614,400 Cost of goods sold 1,952,000 Required: 1. Compute a predetermined overhead rate for Craig, Round your answer to the nearest cent. 15.20 x per machine hour 2. Compute the overhead variance, and label it as under or overapplied 84,000 overapplied 1. Predetermined OH rate - Dudgeted annual overhead Budgeted annual driver love! 2. Calculate over or underapplied by subtracting Apolled or from Actus OH Check My Work