WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine hours, and the rate in the Fabrication Department is based on direct labor hours. At the beginning of the year, the company's management made the following estimates for the year: ent Preparation Fabrication 36,000 58,900 $186,000 196,000 $273,000 525,000 $234,900 524,210 Machine-hours Direct labor-hours 81,000 33,000 Direct materials cost Direct labor cost Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour $ 2.80 -$4.80