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Agassi Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D, direct labor hours in Department E, and machine hours in Department K. In establishing the predetermined overhead rates for 2014, the following estimates were made for the year.
Department
D
E
K
Manufacturing overhead
$1,065,000
$1,525,000
$840,000
Direct labor costs
$1,500,000
$1,625,000
$585,000
Direct labor hours
130,000
125,000
52,000
Machine hours
520,000
650,000
120,000
During January, the job cost sheets showed the following costs and production data.
Direct materials used
$182,000
$163,800
$101,400
$156,000
$143,000
$48,750
Manufacturing overhead incurred
$128,700
$161,200
$102,700
10,400
14,300
4,550
44,200
58,500
10,300
Compute the predetermined overhead rate for each department.
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