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 K Manufacturing overhead $1,200,000 $1,625,000 $720,000 Direct labor costs Direct labor hours Machine hours $1,500,000 $1,250,000 $450,000 100,000 125,000 40,000 400,000 500,000 120,000