You noted the following points during your discussion with the operations manager:

1. Machine hours is the basis for allocating manufacturing overheads (MOH). Therefore, the company emphasizes keeping machine costs to the barest minimum. 2. Machine hours for a job is only counted when the machine is in use and not when idle. 3. Most of the completed jobs are sold within a week of production. Finished goods inventory is therefore kept at a manageable level.

Comment on points 1-3 noted during your discussion with the operations manager.