Proration of overhead. (Z. Iqbal, adapted) The Zaf Radiator Company uses a normal-costing system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The follo

Proration of overhead. (Z. Iqbal, adapted) The Zaf 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 2011:Budgeted manufacturing overhead costs$4,800,000Overhead allocation baseMachine-hoursBudgeted machine-hours80,000Manufacturing overhead costs incurred$4,900,000Actual machine-hours75,000Machine-hours data and the ending balances (before proration of under- or overallocated overhead) are as follows:Actual Machine-Hours2011 End-of-Year BalanceCost of Goods Sold60,000$8,000,000Finished Goods Control11,0001,250,000Work-in-Process Control4,000750,0001. Compute the budgeted manufacturing overhead rate for 2011.2. Compute the under- or overallocated manufacturing overhead of Zaf Radiator in 2011. Dispose of this amount using the following:a. Write-off to Cost of Goods Soldb. Proration based on ending balances (before proration) in Work-in-Process Control, Finished Goods Control, and Cost of Goods Sold