Question
High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined
High Desert Potteryworks 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: Department Molding Painting Direct labor-hours 31,500 50,400 Machine-hours 89,000 36,000 Fixed manufacturing overhead cost $ 133,500 $ 423,360 Variable manufacturing overhead per machine-hour $ 3.20 - Variable manufacturing overhead per direct labor-hour - $ 5.20 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Department Molding Painting Direct labor-hours 73 131 Machine-hours 300 70 Direct materials $ 932 $ 1,100 Direct labor cost $ 700 $ 1,010 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 31 units, what would be the unit product cost? Garrison 16e Rechecks 2017-09-18, 2018-08-21 Next Visit question map Question 4 of 5 Total 4 of 5 Prev
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