Predetermined Overhead Rate, Overhead Variances, JournalEntries
Craig Company uses a predetermined overhead rate to assignoverhead to jobs. Because Craig's production is machine intensive,overhead is applied on the basis of machine hours. The expectedoverhead for the year was $6,461,400, and the practical level ofactivity is 363,000 machine hours.
   During the year, Craig used 369,500 machinehours and incurred actual overhead costs of $6,502,100. Craig alsohad the following balances of applied overhead in its accounts:
| Work-in-process inventory | $ | 551,850 |
| Finished goods inventory | | 571,660 |
| Cost of goods sold | | 1,706,490 |
4. Assuming the overhead variance is material,prepare the journal entry that appropriately disposes of theoverhead variance at the end of the year. If an amount box does notrequire an entry, leave it blank.
| Cost of goods sold | | |
| Work-in-process inventory | | |
| Finished goods inventory | | |
| | | ??????????????? |
