The Company​ (ROW) produces a line of​ non-motorized boats. ROW uses a​ normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for ​:

Budgeted manufacturing overhead cost $125,000
Budgeted direct manufacturing labor cost $250,000
Actual manufacturing overhead cost $117,000
Actual direct manufacturing labor cost $228,000

Inventory balances on December 31, 2014, were as follows:

Account Ending balance 2014 Direct manufacturing labor cost in ending balance

Work in process $50,700 $20,520
Finished goods 245,050 59,280
Cost of goods sold 549,250 148,200

Required:

1. Calculate the predetermined overhead rate.
2. Compute the amount of under- or overapplied manufacturing overhead.
3. Calculate the ending balances in work in process, finished goods, and cost of goods sold if under- or overapplied manufacturing overhead is as follows:

a. Written off to cost of goods sold
b. Prorated based on ending balances (before proration) in each of the three accounts