The Row - On - Watershed 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 2017: (Click the icon to view the data.) Inventory balances on December 31, 2017 were as follows: (Click the icon to view the account balances.) Read the requirements. 2. Compute the amount of under-or overallocated manufacturing overhead. 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: 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 2017 in the ending balances (before proration) in each of the three accounts 4. Which method would you choose? Justify your answer. Ending Balance 2017 direct manufacturing labor cost in ending balance Account Work in process Finished $ 50,400 $ 20,520 goods 226,800 59,280 Cost of goods sold 562,800 148,200 Budgeted manufacturing overhead cost $ Budgeted direct manufacturing labor cost $ Actual manufacturing overhead cost $ Actual direct manufacturing labor cost $ 100,000 200,000 117,000 228,000