Satterfield Manufacturing Company is undecided whether to adopt departmental factory overhead application rates for its Sewing and Treating departments or whether a plantwide rate would be adequate. You advise them to give you budgeted overhead for each department and data for one job so both approaches can be evaluated. They extract the following data from their records:

Required:

a. Prepare departmental and a plantwide overhead rates. Then apply overhead to Job No.
414 using both approaches.

b. Evaluate the approaches indicating which you prefer.

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Sewing Departments Treating Depreciation.. Supplies..... Superintendent's salaries.. Indirect labor. Repairs $ 600 $ 400 1,000 1,500 1,500 4,900 800 5,000 4,100 3,000 Insurance.. 700 800 $8,700 $15.600 Total direct labor-hours.... 400 520 Direct labor-hours on Job No. 414. 10 2