Laser Engraving Inc applies manufacturing overhead to jobs using departmental overhead rates based on direct labor costs. For the engraving department, the overhead rate is 160% of direct labor costs. For the packaging department, the overhead rate is 40% of direct labor costs. Job 777 was charged with the following costs: Engraving department Packaging department Dinne materials used ? $7,000 Dinet laborused $28,000 ? Manufacturing overhead applied ? $21,000 The total cost of producing Job 777 is $189,000. What amount of direct materials were used in the engraving department? $16.875 525.700 $42.500 $81.600 None of the above