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 $24,000, direct labor $14,400, and manufacturing overhead $19,200. As of January 1, Job 49 had been completed at a cost of $108,000 and was part of finished goods inventory. There was a $18,000 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 $146,400 and $189,600, respectively. The following additional events occurred during the month.

1.		Purchased additional raw materials of $108,000 on account.
2.		Incurred factory labor costs of $84,000. Of this amount $19,200 related to employer payroll taxes.
3.		Incurred manufacturing overhead costs as follows: indirect materials $20,400; indirect labor $24,000; depreciation expense on equipment $14,400; and various other manufacturing overhead costs on account $19,200.
4.		Assigned direct materials and direct labor to jobs as follows.

Job No.		Direct Materials		Direct Labor
50		$12,000		$6,000
51		46,800		30,000
52		36,000		24,000

Open job cost sheets for Jobs 50, 51, and 52. Enter the January 1 balances on the job cost sheet for Job 50. Post all costs to the job cost sheets as necessary.

Job No. 50
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Beg.		$		$		$
Jan.
		$		$		$
Cost of completed job
Direct materials						$
Direct labor
Manufacturing overhead
Total cost						$

Job No. 51
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Jan.		$		$		$
		$		$		$
Cost of completed job
Direct materials						$
Direct labor
Manufacturing overhead
Total cost						$

Job No. 52
Date		Direct Materials		Direct Labor		Manufacturing Overhead
Jan.		$		$		$

Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $1,008,000, direct labor costs of $840,000, and direct labor hours of 24,000 for the year.

Predetermined overhead rate

120%