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: Inventory balances on December 31, 2020 were as follows: (Click the icon to view the account balances.) Read the requirements. (Click the icon to view the data.) 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.) H Overhead allocation rate 0/1) Ir Data table ** K Budgeted manufacturing overhead cost S 132,000 Budgeted direct manufacturing labor cost $ 220,000 Actual manufacturing overhead cost $ 131,000 Actual direct manufacturing labor cost $ 225,000 Data table 2020 direct manufacturing Account Ending balance labor cost in ending balance Work in process 42.750 $ 18,000 Finished goods 247.950 58,500 Cost of goods sold 564,300 148,500 Requirements 1. 2. 3. 4. 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. 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 method would you choose? Justify your answer.