I followed the above instructions and it worked to show the expenses that were not allocated to a project.  This report should be a standard report in the report section for anyone looking to find unallocated expenses to a project.  I have now saved the report in the clients QBO.  This is why I appreciate classes so much!  The only unfortunate thing about classes is that you are limited to QBO Plus at 40 classes.  You would have to upgrade to advance to manage more then 40 jobs/classes at a time.