Zaf Corporation manufactures precision equipment made to order for the semiconductor industry. Zaf uses two manufacturing overhead cost pools$-$one for the overhead costs incurred in its highly automated Machining Department and another for overhead costs incurred in its labour$-$based Assembly Department. Zaf uses a normal costing system. It allocates Machining Department overhead costs to jobs based on actual machine$-$hours using a budgeted machine$-$hour overhead rate. It allocates Assembly Department overhead costs to jobs based on actual direct manufacturing labour$-$hours using a budgeted direct manufacturing labour$-$hour rate. The following data are for the year:

$($Click the icon to view the data for the year.$)$

Required

The budgeted overhead rate for the year in the Machining Department is $$75\mathrm{.}38.$

The budgeted overhead rate for the year in the Assembly Department is $$58\mathrm{.}81.$

Requirement $2.$ Compute the under$-$ or overallocated overhead in each department for the year. Di Cost of Goods Sold; b$.$ proration based on ending balances $($before proration$)$ in Cost of Goods Sol amount $($before proration$)$ in the ending balances of Cost of Goods Sold, Finished Goods, and Work

We will begin with a$.$ immediate write$-$off to Cost of Goods Sold.

The first step is to find the over$-$or underallocated amounts for each department. Begin by selecting amount using parentheses or a minus sign.$)$

$$

$$ Ove

$=$ und

$4750000=1432$

$-=245$

Now, dispose of this amount using a write$-$off to Cost of Goods Sold for the Machining Department. subtractions. Enter a $"0"$ for any zero adjustments or balances.$)$

Data for the year