2) Mr. Jones is considering using a job order cost system in two manufacturing departments. He would like the manufacturing overhead to be applied to jobs on the basis of direct labor cost in Department A and machine hours in Department B. In order to establishing the predetermined overhead rates for 2022, the following estimates were made for the year: Manufacturing overhead Direct labor cost Direct labor hours Machine hours Department A B $2,100,000 $1,400,000 1,500,000 1,200,000 100,000 100,000 200,000 400,000 During January the following costs and production data was collected. Department A Direct materials used $195,000 B $128,000 Direct labor cost 100,000 110,000 Manufacturing overhead incurred 130,000 135,000 Direct labor hours 8,000 8,400 Machine hours 16,000 34,000 Mr Jones wants you to: (a) Compute the predetermined overhead rate for each department. (b) Compute the total manufacturing cost assigned to jobs in January in each department. 4 Marks 6 Marks