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iPad2 9:36 PM 3796. During the year, Job 400 was started and completed. The following information was available with respect to this job: 2. $450 $210 40 Machine-hours used Compute the total manufacturing cost assigned to Job 400. 3. During the year, the company worked a total of 146,000 machine-hours on all jobs and incurred actual manufacturing overhead costs of $1,350,000. What is the amount of underap- plied or overapplied overhead for the year? If this amount were closed out entirely to Cost of Goods Sold would the journal entry increase or decrease net operating income? EXERCISE 3-15 Departmental Overhead Rates [LO3-1, LO3-2, LO3-3 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: Cutting Finishing 30,000 5,000 $264,000 $366,000 6,000 Machine-hours Total fixed manufacturing Variable manufacturing overhead per machine-hour....... Variable manufacturing overhead per direct labor-hour overhead cost . . . $2.00 $4.00 Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Cutting Finishing 20 Direct labor-hours Machine-hours 80 $500 $70 $310 $150 Direct labor cost . . Compute the total manufacturing cost assigned to Job 203. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide overhead rate based on direct labor-hours, rather than using departmental rates? Explain. No computations are necessary 3