1. SMITH CO. uses a normal-costing system. It has two direct cost pools, materials and labor, and one indirect cost pool, overhead. Overhead is charged on the basis of direct labor cost. The following information is available for 2020.

$675,000	Budgeted direct labor costs
$945,000	Budgeted overhead costs
$445,500	Costs of actual material used
$640,500	Actual direct labor costs
$906,300	Actual overhead costs

There were two jobs in process on December 31, 2020

Job 21: direct materials=$14,610, direct labor=$15,300

Job 22: direct materials=$17,730, direct labor=$20,400

Smith Co. has no finished goods inventories.

Required:

1. Compute the overhead allocation rate.
2. Calculate the balance in ending work in process and cost of goods sold before any adjustments.
3. Calculate under- or overallocated overhead.
4. Calculate the ending balances in work in process and cost of goods sold if the adjusted amount is a) Written off to cost of goods sold , b) Prorated on the overhead allocated in 2020 (before proration) in the ending balances of cost of goods sold and work-in-process control accounts.