er Lumber produces bagged bark for use in landscaping. Production involves packaging bar chips in plastic bags in a bagging department. The following information describes production operations for October. Bagging Department S 232,000 Direct materials used s 37000 Direct labor used Predetermined overhead rate (based on direct 110 labor) Goods transferred from bagging to finished S (205,000) goods The company's revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $242,000