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: b. Compute the under- or overallocated overhead in each department for the year. Dispose of the under- or overallocated amount in each department using proration based on ending balances (before proration) in Cost of Goods Sold, Finished Goods, and Work-in-Process. (When calculating the prorations, round the interim proration ratio to eight decimal places as needed. Use parentheses or a minus sign for any subtractions. Round your final answers to the nearest whole dollar.) Account Balance WIP 7,400,000 FG 2,300,000 21,700,000 COGS Prorated Underallocated or Overallocated Overhead Machining Dept. Prorated Underallocated or Overallocated Overhead Assembly Dept. Account Bal After Prorat Data for the year Machining Department Assembly Department $ 4,900,000 $ 6,930,000 65,000 0 Total c. Compute the under- or overallocated overhead in each department for the year. Dispose of the un overhead amount (before proration) in the ending balances of Cost of Goods Sold, Finished Goods, Start with the Machining Department. (Round the proportion to eight decimal places as needed. Rou Total Amount of Overallocated or Prorated Underallocated or Budgeted overhead Budgeted machine-hours (MH) Budgeted direct manufacturing labour-hours (DMLH) Actual manufacturing overhead costs $ Underallocated Overhead WIP FG COGS Overallocated x Proportion = Overhead X X X == 0 4,750,000 $ 118,000 7,180,000 Machine-hours and direct manufacturing labour-hours and the ending balances (before proration of underallocated overhead) are as follows: Balance Before Actual Direct Actual Machine- Manufacturing Hours Cost of Goods Sold 44,000 Labour-Hours 80,400 Finished Goods 9,000 Work-in-Process 16,300 11,000 26,500 Proration, End of Year 21,700,000 2,300,000 7,400,000