00:52 : 26 ABC Company produces a line of watches. The company uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2018: Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost $150,000 $300,000 $142,000 $276,000 Inventory balances on December 31, 2018, were as follows: Direct manufacturing labor Accounts Ending Balance cost in ending balance Work in process 205,000 30,360 Finish goods 256,000 $5,200 Cost of goods sold 609,000 190,440 Question 2/20 By using the (proration approach)to adjust the under-over allocated manufacturing over 1. 205,440 2. 204,560 3. 205,766 4. 204,234