Duke Company is a furniture manufacturer. At the end of November two jobs are in work-in-process. The following table provides the information about Jobs 401 and 402.

	Job 401	Job 402
Direct labor	$20,000	$25,000
Direct materials	$ 35,000	$ 20,000
Direct labor hours	2,000	2,500
Machine hours	1,500	3,000

The predetermined overhead rate for Duke is based on budgeted direct labor hours, 100,000, and the budgeted overhead cost, $750,000. The actual data for November are:

Direct Labor Hours	15,000
Overhead	$95,500
Finished Goods Inventory	$60,000
Cost of Goods Sold	$400,000

There is no beginning inventory. Duke prorates overhead variance to FG, WIP, COGS based on total costs in these accounts.

(a) Determine the predetermined overhead application rate and the cost of WIP before overhead variance proration.

(b) Determine the overhead variance and prorate the variance to WIP, FG, and COGS.