High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses

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High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates:

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Job 205 was started on August 1 and completed on August The company’s cost records show the following information concerning the job:

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Required:

1.Compute the predetermined overhead rates used in the Molding Department and the Painting Department.

2.Compute the total overhead cost applied to Job 205.

3.What would be the total manufacturing cost recorded for Job 205? If the job contained 50 units, what would be the unit product cost?

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Related Book For  book-img-for-question

ISE Introduction To Managerial Accounting

ISBN: 9781260091755

8th Edition

Authors: Peter Brewer, Ray Garrison, Eric Noreen

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