ament #4: Overhead in Multiple Departments connect meducation.com 252 Saved Helg High Desert Potteryworks makes a variety of pottery products that it sells to retailers, such as Home Depot. The company uses a job- order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Moulding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the company's management made the following estimates: Direct labour-hours Machine-hours Direct materials cost Direct labour cost Manufacturing overhead cost Department Moulding Painting 14,250 64,500 79,000 8,900 $519,000 $659,000 $ 142,500 $ 451,500 $750,500 $ 767.550 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Direct labour-hours Machine-hours Materials placed into production Direct labour cost Department Moulding Painting 35 170 180 25 $430 $292 $250 $640 1. Compute the predetermined overhead rate used during the year in the Moulding Department. Compute the rate used in the Pai Department. (Round "Cost per machine-hour" answer to 2 decimal places.) Moulding Department Painting Department Predetermined Overhead Rate per machine-hour % of direct labour cost 2. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations. Enter your answer rounded to ti nearest whole dollar.) Total overhead cost 3-a. What would be the total cost recorded for Job 205? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.) Department Moulding Painting Total Direct materials Direct labour Manufarturinn varheart onnant . Nort Direct materials Direct labour Manufacturing overhead applied Total cost 3-b. If the job contained 50 units, what would be the cost per unit? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Cost per unit 4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year: Department Moulding Painting Direct labour-hours 10,900 62,900 Machine-hours 65,900 9,900 Direct materials cost $ 439,000 $ 689,000 Direct labour cost $ 117,000 $445,000 Manufacturing overhead cost $637,950 $ 757,875 1 4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year: Department Moulding Painting 10,900 62.900 65,900 9,900 $ 439,000 $689,000 $117.000 $445,000 $637,950 $ 757,875 Direct labour-hours Machine-hours Direct materials cost Direct labour cost Manufacturing overhead cost s Print ferences What was the amount of under- or overapplied overhead in each department at the end of the year? (Do not round intermediate calculations.) Moulding Department Painting Department overhead overhead
