Landis Company uses a job order cost system in each of its two manufacturing departments. Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department A and machine hours in Department B. In establishing the predetermined overhead rates for 2017, the following estimates were made for the year:

DepartmentABManufacturing overhead$2,100,000$1,400,000Direct labor cost1,500,0001,200,000Direct labor hours100,000100,000Machine hours200,000400,000

During January, the job cost sheet showed the following costs and production data:

DepartmentABDirect materials used$195,000$128,000Direct labor cost100,000110,000Manufacturing overhead incurred130,000135,000Direct labor hours8,0008,400Machine hours16,00034,000

Compute the predetermined overhead rate for each department.(Round answers to 2 decimal places, e.g. 52.75.)

Department ADepartment BPredetermined overhead rate

%$

per machine hour

Compute the total manufacturing cost assigned to jobs in January in each department.

Department ADepartment BTotal manufacturing costs

$

Compute the balance in the Manufacturing Overhead account at the end of January and indicate whether overhead is over- or underapplied.

Balance

Underapplied

Overapplied