Company manufactures high quality musical instruments for professional musicians. The company uses normal costing and allocates manufacturing overhead based on direct labor hours.

For 2020, the budgeted manufacturing overhead was $500,000 and the budgeted labor-hours were 10,000. The actual hourly wage paid to workers was $42 and the actual labor cost was $462,000. The actual manufacturing overhead was $600,000.

Before any adjustments, the ending balances in the following accounts are:

Direct materials $500,000

Work-in-Process 250,000

Finished Goods 750,000

Cost of Goods Sold 3,000,000

Prepare a journal entry that prorates the write-off of the difference between the allocated and actual overhead using the proration approach based on the ending account balances.