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 labour cost in Department D, direct labour 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. Manufacturing overhead. Direct labour costs Direct labour hours Machine hours D Department E K $784,000 $1,500,000 $780,000 $1,120,000 $1,250,000 $450,000 100,000 400,000 125,000 500,000 40,000 120,000 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 labour costs $120,000 $110,000 $37,500 Manufacturing overhead incurred $89,000 $124,000 $69,000 Direct labour hours 8,000 11,000 3,500 Machine hours 34,000 45,000 10,400