InStep Company prints custom training material for corporations. The business was started in January 1, 2015. The company uses a normal costing method. It has two direct cost pools, direct materials and direct labour, and one indirect cost pool, overhead. Overhead is charged to printing jobs on the basis of direct labour cost. The following information is available for 2015:

Budgeted direct labour cost                        $225,000

Budgeted direct material cost $150,000

Budgeted overhead costs                            $315,000

Actual direct material costs                          $148,500

Actual direct labour costs                             $213,500

Actual manufacturing overhead cost $302,100

The company completed two jobs in December 31, 2015. The costs added to each job as of December 31 are as follows:

                                                                Direct materials Direct labour

Job 11                                                   $48,700 $51,000

Job 12                                                   $59,100 $68,000

Required

Compute the total cost of each of the two jobs.

Compute the amount of overhead under or over-allocated

Describe clearly what you would do with the overhead under or over-allocated in the accounts at December 2015.