Reference no: EM13498839

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.

		Department
		D		E		K
Direct materials used		$182,000		$163,800		$101,400
Direct labor costs		$156,000		$143,000		$48,750
Manufacturing overhead incurred		$128,700		$161,200		$102,700
Direct labor hours		10,400		14,300		4,550
Machine hours		44,200		58,500		10,300

 

Compute the predetermined overhead rate for each department.