Ch4-44 Allocation and proration of overhead. Resource Room prints custom training material for corporations. The business was started January 1, 2017. The company uses a normal-costing system. It has two direct- cost pools, materials and labor, and one indirect-cost pool, overhead. Overhead is charged to printing jobs on the basis of direct labor cost. The following information is available for 2017 Budgeted direct labor costs $190,000 Budgeted overhead costs $266,000 Costs of actual material used 5158,000 Actual direct labor costs $175,000 Actual overhead costs $247,200 There were two jobs in process on December 31, 2017: Job 11 and Job 12. Costs added to each job as of December 31 are as follows: Direct materials Direct labor Job 11 54,720 $5,700 Job 12 55,090 S6,900 Resource Room has no finished-goods inventories because all printing jobs are transferred to cost of goods sold when completed. 1. Compute the overhead allocation rate . 2. Calculate the balance in ending work in process and cost of goods sold before any adjustments for under or overallocated overhead. 3. Calculate under-or overallocated overhead, 4. Calculate the ending balances in work in process and cost of goods sold if the under- or overallocated overhead amount is as follows: a. Written off to cost of goods sold b. Prorated using the overhead allocated in 2017 (before proration) in the ending balances of cost of goods sold and work-in-process control accounts 5. Which of the methods in requirement 4 would you choose? Explain 6. Do the adjustment journal entries for method 1 and written off method. 7. Show ending balances for the related general ledger accounts using T-Count