Circus Canoes manufactures canoes using a normal job-costing system. Manufacturing overhead is allocated on the basis of direct manufacturing labour costs. Use the following data to answer the questions: Budgeted manufacturing overhead costs 75,000 Budgeted direct manufacturing labour cost 150,000 Actual manufacturing overhead costs 79,500 Actual direct manufacturing labour cost S 165,000 Information related to the inventory balances is as follows: Direct Manufacturing Account Ending Balance Labour Cost in Ending Balance Work-in-Process 37,500 $ 15,000 Finished Goods 180,000 5 45,000 Cost of Goods Sold 420,000 105,000 REQUIRED: 1. Compute the budgeted manufacturing overhead rate. (2 marks) 2. Compute the over or underallocated manufacturing overhead for the period. (3 marks) 3. Compute the ending balances in WIP, finished goods, and cost of goods sold using the three methods of disposing over or underallocated overhead: a. Write-off to cost of goods sold; (5 marks) b. Prorated based on ending balances in WIP, finished goods, and cost of goods sold; (5 marks) c. Prorated based on the overhead allocated in the ending balances of WIP, finished goods, and cost of goods sold