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11 White Company has two departments, Cutting and Finishing. The company uses a job order costing system and computes a predetermined overhead rate in each

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11 White Company has two departments, Cutting and Finishing. The company uses a job order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Cutting Finishing Direct labor-hours 6,989 72.ee Machine-hours 63,660 Total fixed manufacturing overhead cost $ 380,000 $410,000 Variable manufacturing overhead per machine-hour $ Variable manufacturing overhead per direct labor-hour $ 2.75 20 points eBook Print Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours 4 Machine-hours Direct materials $710 $ 350 Direct labor cost $ 76 $ 342 18 80 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to jo 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Department Cutting Finishing Predetermined overhead rate per MH per DLH Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting Finishing 6,900 72,800 63,600 3,899 $ 380,eee $410,000 $ 2.ee $ 2.75 ook Required: 1. Compute the predetermined overhead rate for each department 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: int Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting Finishing 4 18 80 6 $ 710 $ 35e $ 76 $ 342 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company use predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round Intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine hours, and the Finishing Department bases its rate on direct lobor-hours. At the beginning of the year, the company made the following estimates: 11 20 points Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting 6,900 72.ee 63,662 3,80 $380, eee $410,000 $ 2.00 $ 2.75 eBook Print Required: 1. Compute the predetermined overhead rate for each department 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct labor-hours Machine-hours Direct materials $ 710 $ 35e Direct labor cost $76 $ 342 4 Be 18 6 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Jo 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Would you expect substantially different amounts of overhead cost to be assigned to some jobs the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? OYes ONO

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