Answer the following?

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

Home Corporation manufactures precision equipment made to order for the semiconductor industry. Home uses two manufacturing overhead cost pools-one for the overhead costs incurred in its highly automated Machining Department and another for overhead costs incurred in its labour-based Assembly Department. Home uses a normal costing system. It allocates Machining Department overhead costs to jobs based on actual machine-hours using a budgeted machine-hour overhead rate. It 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: (Click the icon to view the data for the year.) Requirement 1. Compute the budgeted overhead rates for the year in the Machini The budgeted overhead rate for the year in the Machining Department is $78. The budgeted overhead rate for the year in the Assembly Department is $59. Requirement 2. Compute the under- or overallocated overhead in each departmer Cost of Goods Sold; b. proration based on ending balances (before proration) in C amount (before proration) in the ending balances of Cost of Goods Sold, Finished We will begin with a. immediate write-off to Cost of Goods Sold. The first step is to find the over- or underallocated amounts for each department. B amount using parentheses or a minus sign.) Data for the year underallocated overhead) are as follows