use departmental overhead rates to allocate manufacturing overhead

ing "change for the better." m. n. Costs incurred to detect poor-quality goods or services are The rate of production needed to meet customer demand, yet avoid overproduction, O. is known as P. is a storage system used to reduce the waste of transportation and movement, in which tools, materials, and equipment are stored in proximity to where they will be used most frequently. is a management philosophy of delighting customers with superior products and services by continually setting higher goals and improving every business function. $4-2 Use departmental overhead rates to allocate manufacturing overhead (Learning Objective 1) Whitney Furniture uses departmental overhead rates (rather than a plantwide overhead rate) to allocate its manufacturing overhead to jobs. The company's two production de- partments have the following departmental overhead rates: $9 per machine hour Cutting Department: $18 per direct labor hour Finishing Department: Cookie i caramel mk TER 4 Job 484 used the following direct labor hours and machine hours in the two manu- facturing departments: Cutting Department Finishing Department JOB 484 Direct Labor Hours 2 7 Machine Hours 8 1. How much manufacturing overhead should be allocated to Job 484? 2. Assume that direct labor is paid at a rate of $24 per hour and Job 484 used $2,400 of direct materials. What was the total manufacturing cost of Job 484? S4-3 Compute