The Ride - On - Water Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2020: (Click the icon to view the data.) Inventory balances on December 31, 2020 were as follows: B: (Click the icon to view the account balances.) Read the requirements. Data Table ages, use whole numbers. For example, enter Requirements $ 100,000 1. 2. 200,000 Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost 3. $ 114,000 a. 220,000 Calculate the manufacturing overhead allocation rate. Compute the amount of under- or overallocated manufacturing overhead. Calculate the ending balances in work in process, finished goods, and cost of goods sold if under- or overallocated manufacturing overhead is as follows: Written off to cost of goods sold b. Prorated based on ending balances (before proration) in each of the three accounts Prorated based on the overhead allocated in 2020 in the ending balances (before proration) in each of the three accounts Which method would you choose? Justify your answer. C. Data Table Pril 4. Account 2020 direct manufacturing labor Ending balance cost in ending balance 51,000 $ 19,800 Work in process Finished goods Print Done 238,000 59,400 Cost of goods sold 561,000 140,800