3. (10 points) The Charlies Company ("Charlies") produces a line of non-motorized boats. Charlies uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2022: Budgeted manufacturing overhead cost $250,000 Budgeted direct manufacturing labor cost $125,000 Actual manufacturing overhead cost $220,000 Actual direct manufacturing labor cost $111,000 Inventory balances on December 31, 2022 (before adjustment) were as follows: Account Ending balance (5) Work in Process 40,000 Finished goods 120,000 Cost of goods sold 640,000 2022 direct manufacturing labor cost in ending balance (5) 1,000 10,000 100,000 a. Calculate the manufacturing overhead allocation rate. b. Compute the amount of under- or over-allocated manufacturing overhead. Is the amount under- or over-applied? (Question 3 continued) Calculate the ending balances in work in process, finished goods and cost of goods sold (after adjustment) if under- or over-allocated manufacturing overhead is written off to cost of goods sold. d. Calculate the ending balances in work in process, finished goods and cost of goods sold (after adjustment) if under- or over-allocated manufacturing overhead is prorated based on ending balances (before proration) in each of the three accounts