allocates Assembly Department overhead costs to jobs based on actual direct manufacturing labour$-$hours using a budgeted direct manufacturing labour$-$hour rate. The following data are for the year

Required

Compute the budgeted overhead rates for the year in the Machining and Assembly Departments.

Compute the under$-$or overallocated overhead in each department for the year. Dispose of the under$-$or overallocated amount in each department using:

a$.$ Immediate write$-$off to Cost of Goods Sold.

b$.$ Proration based on ending balances $($before proration$)$ in Cost of Goods Sold, Finished Goods, and Work$-$in$-$Process.

c$.$ Proration based on the allocated overhead amount $($before proration$)$ in the ending balances of Cost of Goods Sold, Finished Goods, and Work$-$in$-$Process.

Which disposition method is preferred in requirement $2?$ Explain.

Data for the year