InStep 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. Click the icon to view the following data.) 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: (Click the icon to view the costs.) InStep has no finished-goods inventories because all printing jobs are transferred to cost of goods sold when completed. Read the requirements Requirement 1. Compute the overhead allocation rate. Select the formula and enter the amounts to calculate the overhead allocation rate. (Enter the rate in decimal format to one decimal place, X.X. Do not enter the rate as a percentage.) Budgeted overhead costs Budgeted direct labor costs Overhead allocation rate $ 486,000 270,000 1.8 Requirement 2. Calculate the balance in ending work in process and cost of goods sold before any adjustments for under-or overallocated overhead. Begin by calculating ending work in process before any adjustments for under- or overallocated overhead. Job 11 Job 12 Total Cost Direct materials $ 4,810 $ 5.910 $ 10,720 Direct labor 5.400 7,100 12.500 9.720 12,780 Overhead 22,500 19.930 $ 25,790 45,720 Ending work in process Before calculating the cost of goods sold, let's determine the total manufacturing costs incurred during the period. Direct materials $ 138,000 Choose from any list or enter any number in the input fields and then click Check Answer. X fted i Data Table -X d Job 12 Data Table are trar Direct labor Direct materials Job 11 $ 4,810 Job 12 $ 5,910 $ $ $ 5,400 7,100 Budgeted direct labor costs Budgeted overhead costs Costs of actual material used Actual direct labor costs Actual overhead costs $ 270,000 486,000 138,000 261,000 472,600 $ Print Done $ Print Requirements - X Direct materials $ Direct labor Overhead allocated Cotal manufacturing costs $ ow select the formula and enter the a nter a "0" for any zero balances.) Total manufacturing costs + 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. = work in pro + hoose from any list or enter any nur Print Done parts
