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Sandhill Company uses a job order cost system in each of its three manufacturing departments. Manufacturing overhead is applied to jobs on the basis of

Sandhill Company uses a job order cost system in each of its three manufacturing departments.
Manufacturing overhead is applied to jobs on the basis of direct labor cost in Department D,
direct labor hours in Department E, and machine hours in Department K.
In establishing the predetermined overhead rates for 2025, the following estimates were made
for the year.
Department
D E K
Manufacturing overhead $1,350,000 $1,950,000 $1,080,000
Direct labor costs $1,800,000 $1,500,000 $540,000
Direct labor hours 120,000150,00048,000
Machine hours 480,000600,000144,000
The following information pertains to January 2025 for each manufacturing department.
Department
D E K
Direct materials used $168,000 $151,200 $93,600
Direct labor costs $144,000 $132,000 $45,000
Manufacturing overhead incurred $118,800 $148,800 $94,800
Direct labor hours 9,60013,2004,200
Machine hours 40,80054,00012,480
Compute the predetermined overhead rate for each department.
Compute the total manufacturing costs assigned to jobs in January in each department.
Compute the under or overapplied overhead for each department at January 31.

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