EXERCISE Departmental Overhead Rates L L L
White Company has two departments, Cutting and Finishing. The company uses a joborder costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machinehours, and the Finishing Department bases its rate on direct labor cost. At the beginning of the year, the company made the following estimates:
tableDepartmentCutting,FinishingDirect laborhours Manufacturing overhead cost.....................,$$
