Clara Corporation manufactures custom cabinets for kitchens. It uses a normal-costing system with two direct cost categorieslong dashdirect materials and direct manufacturing laborlong dashand one indirect-cost pool, manufacturing overhead costs. View the manufacturing overhead costs information for 2020.LOADING... View the other information available as of December 31, 2020.LOADING... Requirement Calculate the underallocated or overallocated manufacturing overhead at the end of 2020 and prorate it to Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold accounts based on the allocated manufacturing overhead in each account balance using normal costing. Question content area bottom Part 1 Begin by calculating the budgeted indirect cost rate. Identify the formula and then calculate the rate. (Assume the cost allocation base is direct labor hours.) Budgeted manufacturing overhead costs Budgeted labor hours = Budgeted indirect cost rate $868,000 31,000 = $28 Part 2 The manufacturing overhead allocated during the year is