Justin and Lada who studied at Macewan moved to Toronto upon eraduation and started a company. This company located in Toronto, sews costumes. This company considers itself primarily a service company, because it never produces costumes without a frm order and because it purchases materials to the specifications of the particular job. Amy finished goods inventory is temporary and is reroed out as soon as the show producer pays for the order. During the first quarter of the current fiscal period, the following activity took place in each of the accounts that follow: Required: 1. ( 4 Marks) Assume that the overhead variance (under or over applied) is prorated for greater accuracy. What is the appropriate journal entry to illustrate closing the overhead variance? Hint: First determine the amount of over or under applied overhead. 2. (2 Marks) Complete the following sentence: If the direct method to closing out under or over applied overhead was used instead of the prorated method the change/difference in Gross Profit would be an amount of