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Question 6 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 2020, the following estimates were made for the year. Department D E Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,800,000 $2,250,000 120,000 480,000 $1,500,000 $1,500,000 125,000 600,000 $840,000 $540,000 48,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used Direct labor costs Manufacturing overhead incurred Direct labor hours Machine hours $168,000 $144,000 $118,800 9,600 40,800 $151,200 $132,000 $148,800 13,200 54,000 $93,600 $45,000 $94,800 4,200 10,420 Overhead rate % Department D Department E per direct labor hour Department K per machine hour s Compute the total manufacturing costs assigned to jobs in January in each department. Manufacturing Costs Department D S Department E $ Department K $ Compute the under- or overapplied overhead for each department at January 31. Manufacturing Overhead Department D $ Department E $ Department K S

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