E4-35 (similar to) Question Help 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 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 balonces.) 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.) - Overhead allocation rate 1. Calculate the manufacturing overhead allocation rate. 2. 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 2017 in the ending balances (before proration) in each of the three accounts 4. Which method would you choose? Justify your answer. - 105 125,000 250,000 Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost nary Actual direct manufacturing labor cost A 110,000 230,000 Account 2017 direct manufacturing labor cost in ending balance 23,000 Work in process Finished goods Cost of goods sold Ending Balance 33,400 $ 225,450 576,150 66,700 140,300