Schulz Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $266,400 and budgeted machine-hours were 18,500. Actual factory overhead was $287,920 and actual machine-hours were 19,050. Before disposition of under/over applied overhead, the cost of goods sold was $560,000 and ending inventories were as follows: Required: a. Determine the budgeted factory overhead rate per machine-hour. b. Compute the over/under applied overhead. (1 mark) (2 marks) c. Dispose of the over/under applied overhead by usingthe proration method based upon ending balances before proration in WIP, finished'goods and cost of goods sold.(7 marks) d. Prepare a journal entry to dispose of the variance using the proration approach in c. above. (2 marks) e. Compare the possible methods which could be used to dispose of the over/under applied overhead. Which method do you prefer and why? [In your answer, please state any factors that may influence your decision.] (4 marks)