MontanaTechnology, Inc. has a job-order costing system. The company uses pre-determined overhead rates in applying manufacturing overhead costs to individual jobs. The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost.At the beginning of the most recent year, the company's management made the following estimates for the year:

Department A B Machine-hours 70,000 19,000 Direct labour-hours 30.000 60,000 Direct materials cost $195,000 $282.000 Direct labour cost $260,000 $520,000 Manufacturing overhead cost $420,000 $705,000