Acquatic 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 2005, the following estimates were made for the year.

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

Instructions
1. Compute the predetermined overhead rate for each department.
2. Compute the total manufacturing costs assigned to jobs in January in each department
3. Compute the under- or over applied overhead for each department at January31.

Department S930,000 Manufacturing overhead Direct labor cost Direct labor hours Machine hours $800,000 S750,000 $100,000 S600,000 40,000 40,000 120,000 150,000 50,000 100,000 Department Direct materials used Direct labor cost S92,000 $86,000 S64.000 S48,000 S35,000 S50,400 Manufacturing overhead incured S76,000 S74,000 S61,500 Direct labor hours Machine hours 4,000 3,500 4,200 8,000 10,500 12.600