compute the total overhead cost applied to Job 203 and the total manufacturing cost of the job

eeex order cost system and computes a predetermined overhead rate in each department. The cutting department bases its rate on machine hours, and the finishing departrment bases its rate on direct labor hours. At the beginning of the year, the company made shown in Table 1 the estimates Table 1 Estimates Cutting Direct laber hours Machine hours Mfg, overhead cost Direct labor cost 24,000 4,000 $360,000 $480,000 Required: (a) Compute the predetermined overhead rate to be used in cach department 9 .an () Assume that the overhead rates computed above are in effect. The jo sset for on 203 shows the following: Finishins Cutting 10 Direct labor hours Machine hours Materials requisitioned & used in production Direct labor cost 12 $3,000 $2.500 $1.700 Compute the total overhead cost applied to Job 203 and the total manufacturing cost of the job. 3. Would you expect substantially different amounts of overhead costs to be assigned to some jobs if the company used a plant wide rate based on direct labor costs, rather than using departmental rates? Explain. No computations are necessary Page 2 of 2