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Fiestaware makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead
Fiestaware makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor-hours. At the beginning of the year, the company provided the following estimates: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Department Molding Painting 35,500 50,200 86,000 32,000 $172,000 $436,740 $ 3.00 Variable manufacturing overhead per direct labor-hour - 5 5.00 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Direct labor-hours Machine-hours Direct materials Direct labor cost Department MoldingPainting 87 310 $ 934 129 70 $1,200 $ 690 $ 970 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 35 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Req 1 Req 2 Req 3A Req 38 Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.)
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