Resource Room 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.

Budgeted direct labor costs……………$190,000
Budgeted overhead costs………………$266,000
Costs of actual material used………….$158,000
Actual direct labor costs…………………..$175,000
Actual overhead costs…………………….$247,200

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:

Direct Material Direct Labour
Job 11 $4,720 $5,700
Job 12 $5,090 $6,900

Resource Room has no finished-goods inventories because all printing jobs are transferred to cost of goods sold when completed.

Required:
a. Compute the overhead allocation rate.
b. Calculate the balance in ending work in process and cost of goods sold before any adjustments for under- or overallocated overhead.
c. Calculate under- or overallocated overhead.
d. Calculate the ending balances in work in process and cost of goods sold if the under- or overallocated overhead amount is as follows:

i. Written off to cost of goods sold
ii. Prorated using the overhead allocated in 2017 (before proration) in the ending balances of cost of goods sold and work-in-process control accounts

g. Which of the methods in requirement 4 would you choose? Explain.