17 Exercise 2-13 (Algo) Departmental Predetermined Overhead Rates [L02-1, L02-2, L02-4] 027 White Company has two departments, Cutting and Finishing. The company uses ajob-order costing system and computes a points predetermined overhead rate in each department. The Cutting Department bases its rate on machinehours. and the Finishing Department bases its rate on direct labor-hours. At the beginning ofthe year, the company made the following estimates: Skipped De artment Cutting Finishing eBook Direct laborhours 6,100 89,000 Machinehours 53,000 3,400 Prim Total. fixed manufacturing overhead cost $ 380,000 $ 538,000 Variable manufacturing overhead per machinehour $ 3.00 References Variable manufacturing overhead per direct laborhour $ 3.75 Required: 1. Compute the predetermined overhead rate for each department. 2. Thejob cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing Direct laborhours 4 19 Machinehours 82 6 Direct materials $ 750 $ 360 Direct labor cost $ 96 $ 456 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to somejobs if the company used a plantwide predetermined overhead rate based on direct laborhours, rather than using departmental rates? Complete the questlon by entering your answers In the tabs given below. % Depa rtlnent Cutting Finishing Direct laborhours 4 19 Machinehours 82 6 Direct materials $ 750 $ 360 Direct labor cost $ 96 $ 456 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to somejobs 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 3 ' Requlred 2 ' Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Predetermined overhead rate _-_ per DLH 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 your intermediate calculations and final answer to 2 decimal places.) Total manufacturing costRequired 1 Required 2 Required 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? OYes ONo