Allocation and proration of overhead. Instep company prints customs training material for corporations. The business was started January 1 2014. The company uses a normal costing system. It has two direct cost pools, materials and labor, and one indirect cost pool, overhead. Overhead is cherged to printing jobs on the basis of direct labor cost. The following information is available for 2014.

Budgeted direct labor cost 225000

Budgeted overhead cost 315000

cost of actual materials 148500

Actual direct labor costs 213500

Actual overhead costs 302100

Two jobs in process on December 31 2014

Direct material Direct labor

Job 11 4870 5100

Job12 5910 6800

Compute the overhead allocation rate

Calculate the balance in ending work in process and cost of goods sold before any adjustments for under or over allocated overhead

Calculate under or overallocated overhead

calculate the ending balances in work in process and cost of goods sold in the under or overallocated overhead amount is as follows

^ A.) Written off to cost of goods sold

B.) Prorated using the overhead allocated in 2014 (before prorated) in the ending balances of cost of goods sold and work in process control accounts

which of the methods in requirment 4 would you choose?

Please show all work and formulas to get the correct answer thanks!