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Question 2 (6 Marks) Schulz Corporation applies overhead based upon machine-hours. Budgeted factory overhead was...

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Question 2 (6 Marks) 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/overapplied overhead, the cost of goods sold was $560,000 and ending inventories were as follows: Direct materials $ 60,000 WIP 190,000 Finished goods 250,000 Total $500,000 Required: Determine the budgeted factory overhead rate per machine-hour. (1 Mark) b. Compute the over/underapplied overhead. (1 Mark) Prepare the journal entry to dispose of the variance using the write-off to cost of goods sold approach. (2 Marks) d. Prepare the journal entry to dispose of the variance using the proration approach. (2 Marks) a. c

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