Net Play Company uses a job order cost system in each of its three manufacturing departments.

P2-4BNet Play 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 A, direct labor hours in Department B, and machine hours in Department C.In establishing the predetermined overhead rates for 2014, the following estimates were made for the year.DepartmentABCManufacturing overhead$720,000$640,000$900,000Direct labor cost$600,000$100,000$600,000Direct labor hours50,00040,00040,000Machine hours100,000120,000150,000During January, the job cost sheets showed the following costs and production data.DepartmentABCDirect materials used$92,000$86,000$64,000Direct labor cost$48,000$35,000$50,400Manufacturing overhead incurred$60,000$60,000$72,100Direct labor hours4,0003,5004,200Machine hours8,00010,50012,600Instructions(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 January 31.

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