ACompany has two production departments, packaging and distribution. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the packaging Department is based on machine-hours and in the distribution Department it is based on direct labor-hours. The company uses cost-plus pricing (and a markup percentage of 85% of total manufacturing cost) to establish selling prices for all of its jobs. At the beginning of the year the company made the following estimates