Ti-Enne Srl uses a normal costing system with a single manufacturing overhead cost pool and machine-hours as the allocation base. The following data are for 2019:
Budgeted manufacturing overhead ..........................    €4,800,000
Overhead allocation base .......................................       Machine-hours
Budgeted machine-hours ...................................           80,000
Manufacturing overhead incurred ...........................   €4,900,000
Actual machine-hours .............................................       75000
Machine-hours data and the closing balances (before proration of underallocated or overallocated overhead) are as follows:

Required
1. Calculate the budgeted manufacturing overhead rate for 2019.
2. Calculate the under- or overallocated manufacturing overhead of Ti-Enne in 2019. Prorate this under- or overallocated amount using:
a. Immediate write-off to Cost of Goods Sold
b. Proration based on closing balances (before proration) in Work in Progress, Finished Goods and Cost of Goods Sold
c. Proration based on the allocated overhead amount (before proration) in the closing balances of Work in Progress, Finished Goods and Cost of Goods Sold.
3. Which proration method do you prefer in requirement 2? Explain.

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Actual 2019 end-of-year machine-hours balance Cost of Goods Sold 60 000 €8 000 000 Finished Goods 11 000 €1 250 000 Work in Progress 4 000 €750 000