APMFN12_2022 Question 2 Whatty Company has two departments, Cutting and Finishing. The company uses a job-order costing system and calculates 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-hours. At the beginning of the year, the company made the following estimates: Required: 2.1. Calculate the predetermined overhead rate to be used in each department. 2.2. Assume that the overhead rate that you calculated in (2.1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Calculate the total manufacturing cost assigned to Job 203. 2.3. 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-hours, rather than using departmental rates? Explain. No calculations are necessary