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 | 51,500 | ||||
Machine-hours | 88,000 | 32,000 | ||||
Fixed manufacturing overhead cost | $ | 176,000 | $ | 437,750 | ||
Variable manufacturing overhead per machine-hour | $ | 3.00 | - | |||
Variable manufacturing overhead per direct labor-hour | - | $ | 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
Department | |||||||
Molding | Painting | ||||||
Direct labor-hours | 74 | 132 | |||||
Machine-hours | 390 | 74 | |||||
Direct materials | $ | 938 | $ | 1,180 | |||
Direct labor cost | $ | 690 | $ | 1,000 |
Question: What is the manufacturing overhead cost for the painting job alone?
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