"Don't tell me we've lost another bid!" exclaimed Sandy Kovallas, president of Lenko Products, Inc. "I'm afraid so," replied Doug Martin, the operations vice president. "One of our competitors underbid us by about $9,800 on the Hastings job." "I just cant figure it out," said Kovallas. "It seems were either too high to get the job or too low to make any money on half the jobs we bid anymore. Whats happened?"

Lenko Products manufactures specialized goods to customers' specifications and operates a job-order costing system. Manufacturing overhead cost is applied to jobs on the basis of direct labor cost. The following estimates were made at the beginning of the year:

	Department
	Cutting				Machining				Assembly				Total Plant
Direct labor	$	310,000			$	213,000			$	400,000			$	923,000
Manufacturing overhead	$	525,000			$	929,640			$	96,000			$	1,550,640

Jobs require varying amounts of work in the three departments. The Hastings job, for example, would have required manufacturing costs in the three departments as follows:

	Department
	Cutting				Machining				Assembly				Total Plant
Direct materials	$	11,900			$	900			$	5,600			$	18,400
Direct labor	$	6,400			$	1,600			$	12,900			$	20,900
Manufacturing overhead		?				?				?				?

The company uses a plantwide overhead rate to apply manufacturing overhead cost to jobs.

2. Suppose that instead of using a plantwide overhead rate, the company had used a separate predetermined overhead rate in each department. Under these conditions:

a.Compute the rate for each department for the current year.(Round predetermined overhead percentages to the nearest whole percent.)

	Predetermined Overhead Rate
Cutting Dept		%
Machining Dept		%
Assembly Dept		%

b. Determine the amount of manufacturing overhead cost that would have been applied to the Hastings job. (Round your predetermined overhead percentages to the nearest whole percent.)