QUESTION $1$:

Resit Co has a single indirect$-$cost pool $($Manufacturing Overhead$)$ and uses job order costing system. The budgeted manufacturing overhead cost rate is $$90$ per machine hour, and the budgeted machine hours are $18,000.$ The actual number of machine hours is $9,000,$ and using the budgeted rate, manufacturing overhead cost is allocated for each job during the period. The actual manufacturing overhead incurred is $$800,000.$

a$.$ Calculate the underallocation or overallocation of manufacturing overhead for the period. Show your calculations.

b$.$ By considering the given balances below, use the proration approach to dispose of underallocation$/$overallocation of manufacturing overhead calculated in a$.$ Show your calculations and changes in the related accounts.

$\backslash$table$[[,\backslash$table$[[$Year$-$end balances$],[($before proration$)]],\backslash$table$[[$Manufacturing overhead$],[$allocated $($before proration$)]]],[$Work in progress,$42,000,12,000],[$Finished goods,$60,000,16,000],[$Cost of goods sold,$1,960,000,1,060,000$