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Help Save & Exit Subl White Company has two departments. Cutting and Finishing. The company uses a job-order costing system and computes predetermined overhead
Help Save & Exit Subl White Company has two departments. Cutting and Finishing. The company uses a job-order costing system and computes 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 Direct Labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per nachtne-noor variable manufacturing verhead per direct labor-hour Required Department Cutting 5,000 63,400 1.300,000 $2.00 Finishing 30,000 3.600 $575,000 $4.75 1. Compute the predetermined overhead rate for each department 2. The job cost sheet for Job 200, which was started and completed during the year, showed the following Direct labor-urs Machine-hours Birect auterials Strect labor cost Department Cutting Finishing 15 $368 5:37 205 Using the predetermined ovemeed rates that you computed in requirement compute the total manufacturing cost assigned to Job 203 2. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwid predetermined overted rote besed on direct labor hours. rather than using departmental rates? Check my work
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