Agassi 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 labour cost in Department D, direct
labour hours in Department E, and machine hours in Department
K.
In establishing the predetermined overhead rates for 2020, the
following estimates were made for the year.
Department
D
E
K
Manufacturing overhead
$1,280,000
$1,500,000
$840,000
Direct labour costs
$1,600,000
$1,312,500
$472,500
Direct labour hours
105,000
125,000
42,000
Machine...