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4-41 Proration of overhead with two indirect cost pools. Adventure Designs makes custom backyard play structures that it sells to dealers across the Midwest. The play structures are produced in two depart- ments, fabrication (a mostly automated department) and custom finishing (a mostly manual department). The company uses a normal-costing system in which overhead in the fabrication department is allocated to jobs on the basis of machine-hours and overhead in the finishing department is direct manufacturing labor-hours. During May, Adventure Designs the fabrication department and $39,800 in the finishing department. Additional information follows: allocated to jobs based on reported actual overhead of $42,600 i Manufacturing overhead rate (fabrication department) Manufacturing overhead rate (finishing department) Machine-hours (fabrication department) for May Direct manuf. labor-hours (finishing department) for May Work-in-process inventory, May 31 Finished-goods inventory, May 31 Cost of goods sold, May $12 per machine-hour $20 per direct manuf. labor-hour 3,200 machine-hours 1,800 labor-hours $60,000 $180,000 $360,000 tes under- and overallocated overhead monthly to work in process, finished goods Adventure Designs prora and cost of goods sold based on the ending balance in each account. te the amount of overhead allocated in the fabrication department and the finishing d in May. 2. Calculate the amount of nder or