18)Kingsport Containers Company makes a single product with wide seasonal variations in demand The company uses a job order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base Its estimated costs, by quarter, for the coming year are given below Quarter First Second Third Fourth Direct materials $ 320,000 $ 160,000 $ 80,000 $ 240,000 Direct labor 120,000 60,000 30,000 90,000 Manufacturing overhead 230,000 206,000 194,000 question mark Total manufacturing costs (a) $ 670,000 $ 426,000 $ 304,000 $ question mark Number of units to be produced (b) 120,000 60,000 30,000 90,000 Estimated unit product cost (a) (b) $ 5 58 $ 7 10 $ 10 13 $ question mark Management finds the variation in quarterly unit product costs to be confusing Accordingly, you have been asked to find a more appropriate way of applying manufacturing overhead cost to units of product Required Assuming the estimated variable manufacturing overhead cost per unit is $0 40, what must be the estimated total fixed manufacturing overhead cost per quarter Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter Do not round intermediate calculations and round the Unit product cost to 2 decimal places What is causing the estimated unit product cost to fluctuate from one quarter to the next Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year Do not round intermediate calculations and round your final answer to 2 decimal places 19)White Company has two departments, Cutting and Finishing The company uses job order costing 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 8,200 67,000 Machine hours 62,300 1,400 Total fixed manufacturing overhead cost $ 400,000 $ 457,000 Variable manufacturing overhead per machine hour $ 3 00 0 Variable manufacturing overhead per direct labor hour 0 $3 75 Required Compute the predetermined overhead rate for each department 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 12 Machine hours 86 5 Direct materials $ 760 $ 350 Direct labor cost $ 72 $ 216 Using the predetermined overhead rates you computed in requirement (1), 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 predetermined overhead rate based on direct labor hours, rather than using departmental rates

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18)Kingsport Containers Company makes a single product with wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead

18)Kingsport Containers Company makes a single product with wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter, for the coming year are given below:

	Quarter
First	Second	Third	Fourth
Direct materials	$ 320,000	$ 160,000	$ 80,000	$ 240,000
Direct labor	120,000	60,000	30,000	90,000
Manufacturing overhead	230,000	206,000	194,000	?question mark
Total manufacturing costs (a)	$ 670,000	$ 426,000	$ 304,000	$ ?question mark
Number of units to be produced (b)	120,000	60,000	30,000	90,000
Estimated unit product cost (a) (b)	$ 5.58	$ 7.10	$ 10.13	$ ?question mark

Management finds the variation in quarterly unit product costs to be confusing. Accordingly, you have been asked to find a more appropriate way of applying manufacturing overhead cost to units of product.

Required:

Assuming the estimated variable manufacturing overhead cost per unit is $0.40, what must be the estimated total fixed manufacturing overhead cost per quarter?
Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter?Do not round intermediate calculations and round the "Unit product cost" to 2 decimal places.
What is causing the estimated unit product cost to fluctuate from one quarter to the next?
Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year.Do not round intermediate calculations and round your final answer to 2 decimal places.

19)White Company has two departments, Cutting and Finishing. The company uses job-order costing 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	8,200	67,000
Machine-hours	62,300	1,400
Total fixed manufacturing overhead cost	$ 400,000	$ 457,000
Variable manufacturing overhead per machine-hour	$ 3.00	0
Variable manufacturing overhead per direct labor-hour	0	$3.75

Required:

Compute the predetermined overhead rate for each department.
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	12
Machine-hours	86	5
Direct materials	$ 760	$ 350
Direct labor cost	$ 72	$ 216

Using the predetermined overhead rates you computed in requirement (1), 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 predetermined overhead rate based on direct labor-hours, rather than using departmental rates?