7 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: points Department Cutting Finishing 6,000 30,000 $8,000 5.000 5 264,000 5 366,000 5 2.00 $ 4.00 Direet labor-hours Machine-bours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Book Ask References 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-hour 6 20 Machine-hours 30 Direct materials $500 3310 Direct labor cost 5360 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwilde predetermined overhead rate based on direct labor-hours, rather than using departmental rates? 3108 203 Comolete the question by entering vour answers in the tabs alven below. 7 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: points Department Cutting Finishing 6,000 30,000 $8,000 5.000 5 264,000 5 366,000 5 2.00 $ 4.00 Direet labor-hours Machine-bours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Book Ask References 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-hour 6 20 Machine-hours 30 Direct materials $500 3310 Direct labor cost 5360 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwilde predetermined overhead rate based on direct labor-hours, rather than using departmental rates? 3108 203 Comolete the question by entering vour answers in the tabs alven below