Cost accumulation in two departments Country Products manufactures quilt racks. Pine stock is introduced in Department 1, where the raw material is cut and assembled. In Department 2, completed racks are stained and packaged for shipment. Department 1 applies overhead on the basis of machine hours: Department 2 applies overhead on the basis of direct labor hours. The company's predetermined overhead rates were computed using the following information: $152,240 Department 1 Department 2 Expected overhead Expected DLHS Expected MHS $186,000 1,600 12,000 8.000 1,000 Sue Power contacted Country Products to produce 200 quilt racks as a special order. Power wanted the racks made from teak and to be made larger than the company's normal racks. Country Products designated Power's order as Job #462. During July, Country Products purchased $138,400 of raw material on account, of which $7,600 was teak. Requistions were issued for $136,000 of raw material, including all the teak. There were 114 direct labor hours worked (at a rate of $11 per DLH) and 960 machine hours recorded in Department 1; of these hours, 10 DLHS and 128 MHS were on jobe462. Department 2 had 572 DLHS (at a rate of $18 per DLH) and 72 MHs of these, 63 DLHS and 8 MHS were worked on job #462. Assume that all wages are paid in cash Job #462 was completed on July 28 and shipped to Power. She was billed cost plus 20 percent. a. What are the predetermined overhead rates for Departments 1 and 27 Predetermined Overhead Rate Department 15 Department 2 per MH per DLH b. Prepare journal entries for the July transactions Note: Round amounts to the nearest whole dollar. Note: List any multiple debits or any multiple credits in alphabetical order by account name. Account To record raw materials purchased on account To recant the direct materials issued Debit Credit