a company has $200,000 of actual overhead during the year and $220,000 of allocated

overhead for the same year. If the overallocated overhead is closed totally to Cost of

Goods Sold, the company would have a net operating income of $80,000. If the company

prorates the overallocated overhead, $1,000 would be prorated to Work in Process and

$7,000 would be prorated to Finished Goods. Compute the net operating income for the

company if the overallocated overhead is prorated rather that closed totally to CGS.

Group of answer choices

$60,000

$88,000

$72,000

$100,000

$68,000

$92,000