Help I System Announcements CALCULATOR PRINTER VERSION BACK NEXT Problem 15-01A Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $24,600, direct labor $14,760, and manufacturing overhead $19,680. As of January 1, Job 49 had been completed at a cost of $110,700 and was part of finished goods inventory. There was a $18,450 balance in the Raw Materials Inventory account. During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $150,060 and $194,340, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $110,700 on account. Incurred manufacturing overhead costs as follows: indirect materials $20,910; indirect labor $24,600; depreciation expense on equipment $14,760; and various other manufacturing overhead costs on account $19,680. Assigned direct materials and direct labor to jobs as follows. 2. Incurred factory labor costs of $86,100. Of this amount $19,680 related to employer payroll taxes. 3. 4. Job No. Direct Materials Direct Labor 50 51 $12,300 $6,150 4 47,970 30,750 52 36,900 24,600 Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $1,033,200, direct labor costs of $861,000, and direct labor hours of 24,600 for the year.