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 2017, the following estimates were made for the year. Manufacturing overhead Direct labor costs Direct labor hours Machine hours Department D E K $945,000 $1,350,000 $1,250,000 $1,080,000 $1,250,000 $450,000 100,000 400,000 125,000 40,000 500,000 120,000 During January, the job cost sheets showed the following costs and production data. Department D E K Direct materials used $140,000 $126,000 $78,000 Direct labor costs $120,000 $110,000 $37,500 Manufacturing overhead incurred $99.000 $124,000 $79,000 Direct labor hours 8,000 13,000 3,500 Machine hours 34,000 45,000 8,460