EXERCISE $3-20$ Departmental Overhead Rates $[$L$02,$ L$03,$ L$05]$

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:

$\backslash$table$[[,$Department$],[,$Cutting,Finishing$],[$Direct labor$-$hours $...,6,000,30,000],[,48,000,5,000],[$Manufacturing overhead cost.....................,$$360,000,$$$486,000$