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Problem 16-1A Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 201 7, Job No. 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials 20,000 direct labor 12,000, and manufacturing overhead 16,000 As of January 1, Job No. 49 had been completed at a cost of 90,000 and was part of finished goods inventory. There was a 15,000 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 122,000 and 158,000 respectively. The following additional events occumed during the month. 1. Purchased additional raw materials of 90,000 on account 2. Incurred factory labor costs of 70,000 Of this amount 16,000 related to employer payroll taxes. 3- d manufacturing overhead costs as follows: indirect materials 17,000 indirect labor 20,000 depreciation expense on equipment 12,000 and various other manufacturing overhead costs on account 16,000 4- Assigned direct materials and direct labor to jobs as follows. olo No Direct Materials rect Labor 10,000 5,000 39,000 51 25,000 52 30,000 20,000 Your answer is incorrect. Try again. Calculate the predetermined overhead rate for 2017, assuming Lott Company estimates total manufacturing overhead costs of $840,000 direct labor costs of $700,000, and direct labor hours of 20,000 for the year. (Round answer to the nearest whole percent, e.g. 25%.) Predete mined overhead rate 120 sHov ACCOUNTS SHOW