1.Sophie. Company prints custom training material forcorporations. The business was started January 1, 2014. The company uses a normal-costing system. It hastwo direct cost pools, materials and labor, and one indirect cost pool, overhead. Overhead is charged toprinting jobs on the basis of Machine hours. The following information is available for 2014. Budgeted direct labor costs .. $225,000 Budgeted overhead costs ....$315,000 Budgeted direct labor Hour .. 31,500 Budgeted machine Hours .. 63,000 Costs of actual material used ..$148,500 Actual direct labor costs (29,500 Hrs)..$213,500 Actual overhead costs ...$302,000 Actual machine Hours ... 30000 There were two jobs in process on December 31, 2014: Job 11 and Job 12. Costs added to each job as of December 31 are as follows: Direct materials Direct labor MOH Applied Direct labor Job 11 $4,870 $5,100 $7,030 $5,100 Job 12 $5,910 $6,800 $9,290 $6,800 Boris.Company has no finished goods inventories because all printing jobs are transferred to cost of goodssold when completed. Required (15 Marks) a) Compute the overhead allocation rate. b) Calculate under- or overallocated overhead. c) Calculate the balance in ending work in process and cost of goods sold before any adjustments forunder- or overallocated overhead. d) Calculate the ending balances in work in process and cost of goods sold if the under- or overallocatedoverhead amount is as follows: i. Written off to cost of goods sold ii. Proration based on ending balances (before proration) in Work-inProcess Control, Finished Goods Control, and Cost of Goods Sold e) Which of the methods in requirement 4 would you choose? Explain.