Predetermined Overhead Rates, Overhead Variances, Unit Costs Primera Company produces to products and uses a predetermined overhead rate to apply overhead. Primera currently applies Overhead using a plantwide rate based on direct labor hours. Consideration is being given to the use of departmental overhead rates where overhead would be applied on the basis of direct labor hours in Department 1 and on the basis of machine hours in Department 2. At the beginning of the year, the following estimates are provided Direct labor hours Machine hours Department 1 640,000 16,000 $384,000 Department 2 128,000 192,000 51,152.000 Overhead con Actual results reported by department and product during the year we as follows Department 1 Department 2 Direct labor hours 27,200 134,400 Machine hours 17.600 204.00 Overhead cost $400,000 $1,232,000 Product 1 Product a 400,000 Direct labor hours Department Department Machine hours 147,200 35.400 96,000 Department 1 8,000 9,500 Department 2 24,000 100.000 Required: 1. Compute the plantwide predetermined overhead rate. per direct labor hour Calculate the overhead assigned to each product. Product 1 Product 2 2. Calculate the predetermined departmental overhead rates. If required, round your answers to the nearest cent. Department 1 per direct labor hour Department 2 per machine hour Calculate the overhead assigned to each product. Product 1 Product 2 3. Using departmental rates, compute the applied overhead for the year. What is the under or overapplied overhead for the firm? 4. Prepare the journal entry that disposes of the overhead varance calculated in Requirement 3, assuming it is not material in amount