Exercise $3-15($Algo$)$ Departmental Predetermined Overhead Rates $[$LO$3-1,$ LO$3-2,$ LO$3-4]$

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:

Required:

Compute the predetermined overhead rate for each department.

The job cost sheet for Job $203,$ which was started and completed during the year, showed the following:

Using the predetermined overhead rates that you computed in requirement $(1),$ compute the total manufacturing cost assigned to

Job $203.$

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?