EXERCISE 3-20 Departmental Overhead Rates [L02, L03, L05] White Company has...

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Accounting

EXERCISE 3-20 Departmental Overhead Rates [L02, L03, L05]
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates:
\table[[,Department],[,Cutting,Finishing],[Direct labor-hours ...,6,000,30,000],[,48,000,5,000],[Manufacturing overhead cost.....................,$360,000,$486,000
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