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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 32,000 90,000 $243,000 $563,310 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per 56,900 38,000 2.40 4.40 direct labor-hour 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 HoldingPainting Direct labor- 83 134 hours Machine-hours 350 72 Direct $ 950 $1,300 materia1a Direct labor $ 720 $ 970 cost Required: 1 Compute the predetermined overhead rates used in the Moiding 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 23 unlits, what would be the unit product cost
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