Tinkle-Tinkle Glass Company makes glass globe paper weights for
desks. The company uses a job-order cost system and predetermined
overhead rates to apply manufacturing overhead cost to jobs. The
predetermined overhead rate in the Fabrication Department is based
on machine hours, and the rate in the Finishing Department is based
on direct labor hours. At the beginning of the year, the company’s
management made the following estimates for the year:
Department
Fabrication Finishing
Machine
hours
84,000
27,000
Direct...