EXERCISE 3-13 Departmental Predetermined Overhead Rates 103-1,CL03-2, L03-4 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. Cutting 6,000 48.000 5.264.000 Department Finishing 30.000 5.000 $.366.000 Direct labor hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor hour $2.00 $4.00 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 30988 ---- Connect - Class: ACC 202 Spring 2020 education.com MHE Reader Ece Departemeden Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 48,000 $264.000 $366.00 $2.00 Required: $4.00 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 Departa Cutting Direct labor hours Machine-hours Direct materials Direct labor cost $ 500 $108 SO 201 Using the predetermined overhead rates that you computed in (1) above, compute the total manufacturing costsime 3. Would you expect substantially different amounts of overhead cost to be assigned to some o f the commune a pre predetermined overhead rate based on direct labor hours, rather than using departmental rates Explain. Ne w are