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 Budgeted overhead costs Budgeted direct labor Hour Budgeted machine Hours Costs of actual material used Actual direct labor costs (29,500 Hrs). Actual overhead costs Actual machine Hours $225,000 $315,000 31,500 63,000 ..$148,500 $213,500 ..$302,000 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: Job 11 Job 12 Direct materials $4,870 $5,910 Direct labor MOH Applied $5,100 $7,030 $6,800 $9,290 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-in- Process Control, Finished Goods Control, and Cost of Goods Sold e) Which of the methods in requirement 4 would you choose? Explain