Exercise 2-13 (Algo) Departmental Predetermined Overhead Rates (L02-1, LO2-2, LO2.4) 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: Department cutting Finishing Direct labor-hours 7,400 82,000 Machine-hours 60,400 3,500 Total fixed manufacturing over head cost $ 380,000 5 510,000 Variable manufacturing overhead per machine-hour $ 4.00 Variable manufacturing overhead per direct labor-hour $ 4.75 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-hours 5 18 Machine-hours BB 5 Direct materials $ 710 $ 350 Direct labor cont 5. 120 $ 432 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 tomheducation.com M Question WeChater 2 Cue ter 26 Help Save & E Submit Check my werk 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-hours 5 18 Machine-hours 5 Direet materiale 1710 $ 150 Direct labor cost $ 120 #432 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 plantwide predetermined overhead rote based on direct labor hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Cutting Department Finishing Department Predetermined overhead rate 7.64 per MH 11.00 per DLH Required 2 > 5 He overnead 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-hours 18 Machine-hours 88 Direct materials $ 710 $ 350 Direct labor cost $ 120 $ 432 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost ass 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used predetermined overhead rate based on direct labor-hours, rather than using departmental rates? 5 Complete the question by entering your answers in the tabs given below. ces Required 1 Required 2 Required 3 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost $ 176
