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1 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
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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: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Molding Painting 37,000 51,389 83,000 39,800 $199,200 $456,578 $ 2.60 - 5 4.60 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting 74 132 33e 65 Direct labor-hours Machine-hours Direct materials Direct labor cost $942 $ 710 $1,240 $ 980 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-a. What would be the total manufacturing cost recorded for Job 2052 3-b. If the job contained 38 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 38 Compute the predetermined Overhead Rates used in the Molding Department and the Painting Departme answers to 2 decimal places!) Predetermined Overhead Rate Molding Department 55.00 per MH Painting Department 16.30 per DLH Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 3A Req 38 Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) Total overhead cost 3,802) What would be the total manufacturing cost recorded for Job 2057 (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) Total Department Molding Painting Direct materials Direct labor Manufacturing overhead Total cost S0S0S Req2 Req3B > Reg 1 Reg 2 Req 3A Req 3B If the job contained 38 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit Step by Step Solution
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