The Ride-On-Wave 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 the year XXX1: Budgeted manufacturing overhead cost $125,000 Budgeted direct manufacturing labor cost $250.000 Actual manufacturing overhead cost $117,000 Actual direct manufacturing overhead cost $228,000 Inventory balances on December 31, Year XXX1, were as follows: Account Ending balance Work in process $50.700 Finished goods $245.050 Cost of goods sold $549,250 Required: 1. Calculate the manufacturing overhead allocation rate. (2 points) 2. Compute the amount of under or overallocated manufacturing overhead. (3 points) 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: (4 points) a. Written off to cost of goods sold b. Prorated based on ending balances (before proration) in each of the three accounts 4. Which method would you choose? Justify your answer. (1 point)