Ash 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.

Compute predetermined overhead rates, apply overhead, and calculate under- or overapplied overhead.

		Department
		D		E		K
Manufacturing overhead		$1,200,000		$1,500,000		$900,000
Direct labor costs		$1,500,000		$1,250,000		$450,000
Direct labor hours		100,000		125,000		40,000
Machine hours		400,000		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	11,000	3,500
Machine hours	34,000	45,000	10,400

1. Compute the predetermined overhead rate for each department.

2. Compute the total manufacturing costs assigned to jobs in January in each department.

3. Compute the under- or overapplied overhead for each department at January 31.