the total cost per unit produced (carry your answe ercise 4.11 Predetermined overhead Rate, Application of Overhead OBJEC Findley Company and Lemon Company both use predetermined overhead rates to apply manu facturing overhead Findley's is based on machine hours, and Lemon's is based on materials cost. Budgeted production and cost data for Find and Lemon are as follows: Lemon Findley Manufacturing overhead S912,000 Machine hours. S1,800,000 Materials cost $450,000 At the end of the year. Findley Company had incurred overhead of s915.000 and had produced 19,600 units using 47,780 machine hours and materials costing S445,000. Lemon Company had incurred overhead of s972,000 and had produced 61.500 units using 32,650 machine hours and materials costing si 777,500. Required: l. Compute the predetermined overhead rates for Findley Company and Lemon Company. 2. Was overhead over- or underapplied for each company, and by how much? Exercise 4.12 Predetermined overhead Rate, overhead variances, Journal Entries OBJE Craig Company uses a predetermined overhead rate to assign overhead to jobs. Because Craig's production is machine intensive, overhead is applied on the basis of machine hours. The expected overhead for the year was S5.7 million, 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 $5.73 million. Craig also had the following balances of applied overhead in its accounts: Work-in-process inventory S 576,000 Finished goods inventory 624.000 Cost of goods sold l,800,000 Required I. Compute a predetermined overhead rate for Craig. 2. Compute the overhead variance, and label it as under- or overapplied. 3. Assuming the overhead variance is immaterial, prepare the journal entry to dispose of the variance at the end of the year 4. Assuming the overhead variance is material, prepare the journal entry that appropriately disposes of the overhead variance at the end of the year. Exercise 4.13 Departmental Overhead Rates Inc., prod machine tools and currently uses a plantwide overhead rate, based on uces machine Whipple, the plant manager, has heard that departmental overhead rates can offer significantly better cost assignments than can a plantwide rat