Side-by-Side 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.) Side-by-Side 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.) Overhead allocation rate = Data table Budgeted direct labor costs Budgeted overhead costs EA $ Costs of actual material used Actual direct labor costs $ EA +A Actual overhead costs $ GA 270,000 351,000 135,000 255,000 332,300 Data table Direct materials Direct labor Job 11 4,870 $ 4,800 Job 12 $ 5,900 $ 6,200 Requirements 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