JaNes Corporation manufactures custom cabinets for kitchens. It uses a normal$-$costing system with two direct cost categories$-$direct materials and direct manufacturing labor$-$and one indirect$-$cost pool, manufacturing overhead costs.

View the manufacturing overhead costs information for $2020.$

View the other information available as of December $31,2020.$

Requirement

Calculate the underallocated or overallocated manufacturing overhead at the end of $2020$ and prorate it to Work$-$in$-$Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal costing.

Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. $($Assume the cost allocation base is direct labol hours.$)$

$\backslash$table$[[$Budgeted manufacturing overhead costs $,\backslash$table$[[$Budgeted indirect cost$],[$rate$]],,],[$$$,1,305,000,29,000,45]]$

The manufacturing overhead allocated during the year is $ $$1,170,000.$

Identify the formula and calculate the underallocated or overallocated manufacturing overhead. $($Use parentheses or a minus sign to report overhead overallocated.$)$

$\backslash$table$[[$Actual indirect costs incurred,Indirect costs allocated,$\backslash$table$[[$Underallocated $($overallocated$)],[$indirect costs$]],,],[$$$,1,196,000,$$$,1,170,000,26,000]]$

Finally, calculate the manufacturing overhead in each account balance allocated in the curent year, and then prorate the underallocated or overallocated manufacturing overhead to Work$-$in$-$Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal costing. $($Enter percentages to one decimal point, X$.$X$\%.)$

$\backslash$table$[[$Account$,,\backslash$table$[[$Account$],[$Balance$],[($Before$],[$Proration$)]],\backslash$table$[[$Actual Direct$],[$Manufacturing$],[$Labor$-$Hours$]],\backslash$table$[[$Manufacturing$],[$Overhead in Each$],[$Account Balance$],[$Allocated in the$],[$Current Year $($Before$],[$Proration$)]],\backslash$table$[[$Manufacturing$],[$Overhead as a$],[$Percent of Total$]],\backslash$table$[[$Proration$],[$Amount$]],\backslash$table$[[$Account$],[$Balance$],[($After$)],[$Proration$)]]],[$Work$-$in$-$process control,$$,39,000,676,,\%,,],[$Finished goods control,$$,65,000,1,924,,\%,,],[$Cost of goods sold,$$,1,800,000,23,400,,\%,,],[$Total$,$$$,1,904,000,26,000,,\%,,]]$