6 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 labour cost. At the beginning of the year, the company made the following estimates: Department Cutting Finishing points Direct labour-hours 6,700 34,700 Machine-hours 49,250 4,700 04:34:08 Manufacturing overhead cost $502,350 Direct labour cost $ 67,000 $562,500 $312,500 Skipped eBook Required: 1. Compute the predetermined overhead rate to be used in each department. (Round your answers to 2 decimal places.) Department Cutting Finishing Predetermined overhead rate per MH % of DLC 2. Assume that the overhead rates that you computed in Requirement (1) are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following: Department Direct labour-hours Machine-hours Materials requisitioned Direct labour cost Cutting Finishing 8 25 85 5 $490 $ 88 $300 $167 Compute the total overhead cost applied to job 203. (Do not round intermediate calculation. Round your final answer to decimal places.) Total overhead cost applied 3. 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 labour cost, rather than using departmental rates? Yes No