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Predetermined Overhead Rate, Overhead Varances Journal Entries Craig Company uses a predetermined overhead rate to...

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Accounting

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Predetermined Overhead Rate, Overhead Varances Journal Entries Craig Company uses a predetermined overhead rate to assign overtread to obs. Because Craig's production is machine intensive overhead is applied on the basis of machine hours. The expected overhead for the year was 56,786,000, and the practical level of activity is 390,000 machine hours During the year, Craigused 196, 500 machine hours and incurred actual overhead costs of 16,813,100 Craig also had the following balances of applied overhead in its accounts: Work in process inventory $ 543,000 Finished goods inventory 579,000 Cost of goods sold 1,878,000 Required 1. Computea predetermined overhead rate for Craig Hound your anger to the nearest cant per machine hour 2. Compute the overhead variance, and label it as under-reverappiled 3. Aevuming the overta variante le immaterial, prepare the Journal entry to dispose of the vertance at the end of the year 4. Atsoming the overhead vananc material, prepare the journal entry that appropriately dispones of the overhead vertance of the end of the year 1 an amount box does not reguire an entry, move bank

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