Q.5. DASON, prints custom marketing materials. The business was started January 1, 2019. 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 2019. Budgeted direct labor costs Rs.220,000 Budgeted overhead costs Rs.320,000 Costs of actual material used Rs.130,400 Actual direct labor costs Rs. 150,250 Actual overhead costs Rs.145,000 There were two jobs in process on December 31, 2019: Job 7 and Job 8. Costs added to each job as of December 31 are as follows: Direct materials Direct labor Job 11 Rs. 12, 620 Rs.14,500 Job 12 Rs.10, 830 Rs. 5,250 ABC, has no finished goods inventories because all printing jobs are transferred to cost of goods sold when completed 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 over allocated overhead. 3. Calculate under- or over allocated overhead. 4. Calculate the ending balances in work in process and cost of goods sold if the under or over allocated overhead amount is as follows: a. Written off to cost of goods sold b. Prorated using the ending balance (before proration) in cost of goods sold and work-in-process control accounts 5. Which of the methods in requirement 4 would you choose? Explain