Schulz Corporation applies overhead based upon machine - hours Budgeted factory overhead was $ 266,400 and budgeted machine hours 1854 . Actual factory overhead was $ 287,920 and actual machine - hours were 19,050 . Before disposition of under/overallocated overhead the following information was available:

account balance overhead portion

Direct materials $60000 $nil

WIP $190000 $66500

Finished goods $250000 $75000

Cost of goods sold $560000 $184800

. Required:

a, Determine the budgeted factory overhead rate per machine - hour

b . Compute the over / under allocated overhead

c, Prepare the journal entry to dispose of the variance using the write - off to cost of goods sold approach The corporation uses Manufacturing Overhead Allocated and Manufacturing Overhead control accounts