Laydown Industries uses a job$-$order costing system.

It has two departments that manufactures the product, Cutting and Finishing.

The company produces unique Christmas ornaments that are shaped in the Cutting department and then have a special coating in the Finishing department. The company calculates a pre$-$determined overhead rate in each department.

The Cutting department bases its rate on machine$-$hours and the Finishing department bases its rate on direct labour cost$($$$).$

At the beginning of $2024,$ the company made the following estimates:

$\backslash$table$[[$Factory Overhead,Cutting,Finishing$],[$Machine Hours,$$360,000,$$$486,000$