Stanley Company applies overhead based on machine hours. The following data was available:

Budgeted factory overhead costs$280,000

Budgeted machine hours20,000

Actual factory overhead costs$292,000

Actual machine hours19,050

Cost of goods sold$560,000

Direct materials inventory, ending balance$60,000

Work-in-process inventory, ending balance$190,000

Finished goods inventory, ending balance$250,000

Required:

A) Compute the budgeted factory overhead rate.

B) Compute the underapplied or overapplied factory overhead.

C) Under the immediate write-off approach to overhead variances, how would you dispose of the overhead variance?

D) If the immediate write-off approach to overhead variances is not used, how would you dispose of the overhead variance?