Exercise 2-13 Departmental Predetermined Overhead Rates [LO2-1, 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 CuttingRinishing 78,000 1,989 370,000 460,000 ,480 Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable nanufacturing overhead per direct labor-hour 62,600 2.00 2.75 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: Direct labor-hours Machine hours Oirect materials Direct labor cost Department Cutting Finshing 730 $ 360 17 90 120 $ 408 Using the predetermined overhead rates that you computed in requirement (0, 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? C Prev 2 of Next> 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: 28 points Direct labor-hours Machine-hours Direct materials Direct labor cost 17 73 $ 368 120 $ 408 03 47 01 Using the predetermined overhead rates that you computed in requirement (0), compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts predetermined overhead rate based on direct labor-hours, rather than using departmental rates? of overhead cost to be assigned to some jobs if the company used a plantwide Answer is complete but not entirely correct. Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufactur ing cost mal places and final answer to the noarest dollar amount.) s 2,442 C Required 1 Required 3 > Next )