Sheridan 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 2022, the following estimates were made for the year. Department D E K Manufacturing overhead $1,333,800 $1,710,000 $1,026,000 Direct labor costs $1,710,000 $1,425,000 $513,000 Direct labor hours 114,000 142,500 45,600 Machine hours 456,000 570,000 136,800 The following information pertains to January 2022 for each manufacturing department. Department D E K Direct materials used $159,600 $143,640 $88,920 Direct labor costs $136,800 $125,400 $42,750 Manufacturing overhead incurred $112,860 $141,360 $90,060 Direct labor hours 9,120 12,540 3,990 Machine hours 38,760 51,300 11,856