The Ride - On -Wonder 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 Inventory balances on December 31, 2020 were as follows: for 2020: Eff (Click the icon to view the account balances.) ED(Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the manufacturing overhead allocation rate. Identify the formula and calculate the manufacturing overhead allocation rate. (Enter the result as a whole number.) 1 = Overhead allocation rate Requirement 2. Compute the amount of under- or overallocated manufacturing overhead. Identify the formula and calculate the under- or manufacturing overallocated overhead. (Use parentheses or a minus sign to report overhead overallocated.) Underallocated (overallocated) Requirement 3. 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. (c) prorated based on the overhead allocated in 2020 in the ending balances (before proration) in each of the three accounts. (a.) Calculate the ending balances in work in process. finished goods and cost of goods sold if under- or overallocated manufacturing overhead is written off to cost of goods sold. Account Ending Balance Work in process Finished goods Cost of goods sold (b.) Begin by identifying the formula and calculating the adjustment to each account assuming under- or overallocated manufacturing overhead is prorated based on ending balances (before proration) in each of the three accounts. (Use a minus sign or parentheses to show overallocated amounts and adjustments to be subtracted.) (b.) Adjustment WIP FG CGS Now calculate the ending balances in work in process, finished goods and cost of goods sold if under- or overallocated manufacturing overhead is prorated based on ending balances (before proration) in each of the three accounts. (Use a minus sign or parentheses to show adjustments to be subtracted.) (b.) Ending Balance (adjusted) WIP FG CGS (c.) Begin by identifying the formula and calculating the adjustment to Work-in-Porcess, Finished Goods, and Cost of Goods Sold assuming under- or overallocated manufacturing overhead is prorated based on the the actual direct labor dollars given in the question. (Use a minus sign or parentheses to show overallocated amounts and adjustments to be subtracted.) (c.) Adjustment WIP FG CGS (c.) Enter the formula and calculate the ending balances in work in process, finished goods and cost of goods sold if under- or overallocated manufacturing overhead is prorated based on the overhead allocated in 2020 in the ending balances (before proration) in each of the three accounts. (Use a minus sign or parentheses to show overallocated amounts and adjustments to be subtracted.) (c.) Ending Balance (adjusted) WIP FG CGS Requirement 4. Which method would you choose? Justify your answer. The method that makes the most sense is to . The amount of the over- underallocation amount is SOData table Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost lances in work in process, finishaed goods and cost ing Balance formula and calculating the adjustment to each ac adjustments to be subtracted.) Data table 2020 direct manufacturing 5 100,000 . . . Account Ending balance labor cost in ending balance 3 200,000 07000 Work in process 5 51,000 19,800 5 107,000 R 520,000 Finished goods 238,000 59,400 9 B u Cost of goods sold 561,000 140,800 Requirements Calculate the manufacturing overhead allocation rate. 2. Compute the amount of under- or overallocated manufacturing overhead. 3. Calculate the ending balances in work in procass, finished goods, and cost of goods sold if under- or overallocated manufacturing overhead is as follows: a. Written off to cost of goods sold b. Prorated based on ending balances (before proration) in each of the three accounts = c. Prorated based on the overhead allocated in 2020 in the ending = balances (before proration) in each of the three accounts = Which mathod would you choose? Justify your answer. G B efore proration) in each of the three accounts. (L