Wave Rebel Company (WRC) produces only one product. WRC uses a normal costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for 2013:

Budgeted manufacturing overhead cost $475,000

Budgeted direct manufacturing labor cost $250,000

Actual manufacturing overhead cost $445,000

Actual direct manufacturing labor cost $230,000

Inventory balances on December 31, 2013, were as follows:

Work in process $104,900

Finished goods 245,050

Cost of goods sold 949,390

Required:

1. Calculate the manufacturing overhead allocation rate.
2. Compute the amount of under or over allocated manufacturing overhead.
3. Calculate the ending balances in work in process, finished goods, and cost of goods sold if under or over allocated manufacturing overhead is as follows:
   1. Written off to cost of goods sold

b. Prorated based on ending balances (before proration) in each of the three accounts