1.	Compute the budgeted manufacturing overhead rate for 2017.
2.	Compute the under- or overallocated manufacturing overhead of Home Radiator in 2017. Dispose of this amount using the following:
	a.	Write-off to Cost of Goods Sold
	b.	Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold
	c.	Proration based on the overhead allocated in 2017 (before proration) in the ending balances of Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold
3.	Which method do you prefer in requirement 2? Explain.

%x P4-39 (similar to) Question Help The Home Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: E: (Click the icon to view the following data.) Data Table Read the requirements. Manufacturing overhead incurred Manufacturing overhead allocated Budgeted manufacturing overhead costs S 4,875,000 $ 4,925,000 $ 4,500,000 Overhead allocation base a. Dispose of this amount using a write-off to Cost of Goods Sold. Show the account ba Budgeted machine-hours Manufacturing overhead costs incurred Machine-hours 65,000 4,925,000 $ Account Balance Actual machine-hours 60,000 Machine-hours data and the ending balances (before proration of under-or overallocated overhead) are as follow Cost of Goods Sold After Proration 10,625,000 1,250,000 625,000 Finished Goods Control Actual Machine-Hours 2017 End-of-Year Balance Work-in-Process Control Cost of Goods Sold $ 51,000 7,000 Finished Goods Control 10,625,000 1,250,000 625,000 Enter any number in the edit fields and then click Check Answer. Work-in-Process Control 2,000 %x P4-39 (similar to) Question Help The Home Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2017: E: (Click the icon to view the following data.) Data Table Read the requirements. Manufacturing overhead incurred Manufacturing overhead allocated Budgeted manufacturing overhead costs S 4,875,000 $ 4,925,000 $ 4,500,000 Overhead allocation base a. Dispose of this amount using a write-off to Cost of Goods Sold. Show the account ba Budgeted machine-hours Manufacturing overhead costs incurred Machine-hours 65,000 4,925,000 $ Account Balance Actual machine-hours 60,000 Machine-hours data and the ending balances (before proration of under-or overallocated overhead) are as follow Cost of Goods Sold After Proration 10,625,000 1,250,000 625,000 Finished Goods Control Actual Machine-Hours 2017 End-of-Year Balance Work-in-Process Control Cost of Goods Sold $ 51,000 7,000 Finished Goods Control 10,625,000 1,250,000 625,000 Enter any number in the edit fields and then click Check Answer. Work-in-Process Control 2,000