The Zero Radiator Company uses a normal$-$costing system with a single manufacturing overhead cost pool and machine$-$hours as the cost$-$allocation base. The following data are for $2020$

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Read the requirements.

Requirement $1.$ Compute the budgeted manufacturing overhead rate for $2020.$

Begin by selecting the formula you will use. Then, enter the amounts and calculate the rate.

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Requirements

Compute the budgeted manufacturing overhead rate for $2020.$

Compute the under$-$ or overallocated manufacturing overhead of Zero

Radiator in $2020.$ Adjust for this amount using the following:

a$.$ Write$-$off to Cost of Goods Sold

b$.$ Proration based on ending balances $($before proration$)$ in Work$-$in$-$Process

Control, Finished Goods Control, and Cost of Goods Sold

c$.$ Proration based on the overhead allocated in $2020($before proration$)$ in

the ending balances of Work$-$in$-$Process Control, Finished Goods Control,

and Cost of Goods Sold

Which method do you prefer in requirement $2?$ Explain.

Data table