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Surfcurl Ltd produces a line of non-motorised boats. Surfcurl uses a normal-costing system and allocates production overhead using direct production labour cost. The following data are for 2019: Budgeted production overhead cost $125,000 Budgeted direct production labour cost $250,000 Actual production overhead cost $117,000 Actual direct production labour cost $228,000 Inventory balances on 31 December 2019 were as follows: Account Work in process Finished goods Cost of goods sold Ending balance 2018 direct production labour cost in ending balance $50,700 $20,520 245,050 59,280 549,250 148,200 Required a) Calculate the production overhead allocation rate. (1 marks suggested time approx. 3 minutes) b) Calculate the amount of under- or over-allocated production overhead. (1 marks - suggested time approx. 4 minutes c) Calculate the ending balances in Work In Process, Finished Goods and Cost Of Goods Sold if under- or over-allocated production overhead is as follows: i. Written off to Cost of Goods Sold. (1 mark - suggested time approx. 4 minutes ii. Prorated based on ending balances (before proration) in each of the three accounts. (2 marks - suggested time approx. 7 minutes iii. Prorated based on the overhead allocated in 2019 in the ending balances (before proration) in each of the three accounts. (2 marks - suggested time approx. 7 minutes iv. Which method would you choose? Justify your answer.. (1 mark - suggested time approx. 3 minutes