High Desert Pottery works 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:

Job 205 was started on August 1 and completed on August 10. The company’s cost records show the following information concerning the job:

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?

Transcribed Image Text:

Department Molding Painting Direct labor-hours 12,000 60,000 Machine-hours 70,000 8,000 $497,000 $1.50 $615,000 Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour. Variable manufacturing overhead per direct labor-hour $2.00