Instructions.

a. Compute the total overhead to be applied to production in each department during January. b. Compute the total manufacturing costs assigned to jobs in January in each department. c. Compute the under- or overapplied overhead for each department at January 31.

3. Agassi Company manufactures units in three different manufacturing departments. Manufacturing overhead is applied 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 2017 the following estimates were made for the year artment Manufacturing overhead Direct labor costs Direct labor hours Machine hours $1,200,000 $1,500,000 $900,000 $1,500,000 $1,250,000 $450,000 125,00040,000 500,000 120,000 100,000 400,000 At the end of January, the following actual cost and production data is available: artment $140,000 $126,000$78,000 $120,000 $110,000 S37,500 $79,000 3,500 10,400 used Direct materials Direct labor costs Manufacturing overhead incurred$ 99,000 Direct labor hours Machine hours $124,000 11,000 45,000 8,000 34,000