The Ride-On - Waterway 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: (Click the icon to view the account balances.) Read the requirements. $ 135,000 225,000 $ Budgeted manufacturing overhead cost Budgeted direct manufacturing labor cost Actual manufacturing overhead cost Actual direct manufacturing labor cost $ 142,000 $ 230,000 2020 direct manufacturing Account Ending balance $ 50,700 $ Work in process labor cost in ending balance 23,000 66,700 245,050 Finished goods Cost of goods sold 549,250 140,300 1. 2. 3. 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