Part B MK Company has just finished its first year of operations. MK used a budgeted overhead rate to allocate manufacturing overhead to products. Actual manufacturing overhead incurred was $425,000 and $435,000 of overhead was allocated to Work-in-Process. Budgeted manufacturing overhead was $465,000. Ending balances in the relevant accounts were: Work-in-Process $40,000 Finished Goods $80,000 Cost of Goods Sold $680,000 Required: 1. Compute the amount of underallocated or overallocated overhead. (2 marks) 2. Explain why MK Company's underallocated or overallocated overhead has occurred and the options to dispose of it. (5 marks)