Martin 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 X and machine hours in Department Y. In establishing the predetermined overhead rates for 2014, the following estimates were made for the year:

Department

X

Y

	Manufacturing overhead	$2,100,000	$1,500,000
	Direct labor cost	1,500,000	1,200,000
	Direct labor hours	100,000	100,000
	Machine hours	200,000	400,000

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

Department

X

Y

	Direct materials used	$190,000	$130,000
	Direct labor cost	105,000	120,000
	Manufacturing overhead incurred	145,000	112,000
	Direct labor hours	8,000	8,400
	Machine hours	16,000	30,000

Instructions (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing cost assigned to jobs in January in each department. (c) Compute the balance in the Manufacturing Overhead account at the end of January and indicate whether overhead is over- or underapplied.