InStep Company prints custom 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 charged to printing jobs on the basis of direct labor cost. The following information is available for 2014. Budgeted direct labor costs $225,000 Budgeted overhead costs $315,000 Costs of actual material used $148,500 Actual direct labor costs $213,500 Actual overhead costs $302,100 There were two jobs in process on December 31, 2014: Job 11 and Job 12. Costs added to each job as of December 31 are as follows: Direct materials Direct labor Job 11 $4,870 $5,100 Job 12 $5,910 $6,800 InStep Company has no finished goods inventories because all printing jobs are transferred to cost of goods sold when completed. Required 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.

InStep Company prints custom training material for corporations. The business was started January 1,2014 . The company uses a normal-costing system. It has two 2 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 2014. There were two jobs in process on December 31, 2014: Job 11 and Job 12. Costs added to each job as of December 31 are as follows: Direct materials Direct labor Job 11$4,870$5,100 Job 12$5,910$6,800 InStep Company has no finished goods inventories because all printing jobs are transferred to cost of goods sold when completed. Required 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