Net Play Manufacturing 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 A, direct labor hours in Department B, and machine hours in Department C. In establishing the predetermined overhead rates for 2012, the following estimates were made for the year.

During January, the job cost sheets showed the following costs and production data.

Instructions
(a) Compute the predetermined overhead rate for each department.
(b) Compute the total manufacturing costs assigned to jobs in January in each department.
(c) Compute the under- or overapplied overhead for each department at January31.

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Department $720,000 $640,000 $600,000 $100,000 $600,000 40,000 100,000 120,000 50,000 $900,000 Manufacturing overhead Direct labor cost Direct labor hours Machine hours 50,000 40,000 Department Direct materials used Direct labor cost Manufacturing overhead incurred Direct labor hours Machine hours $92,000 $86,000 $64,000 $48,000 $35,000 $50,400 $72,100 4,200 8,000 0,500 12,600 $60,000 4,000 $60,000 3,500