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 labor cost in Department D, direct
labor 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
$1,080,000
$1,500,000
$1,020,000
Direct labor costs
$1,542,857
$1,250,000
$450,000
Direct labor hours
100,000
125,000
40,000...