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 | 30,500 | 56,500 |
Machine-hours | 82,000 | 32,000 |
Fixed manufacturing overhead cost | $ 139,400 | $ 519,800 |
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 | 86 | 129 |
Machine-hours | 370 | 70 |
Direct materials | $ 948 | $ 1,180 |
Direct labor cost | $ 720 | $ 1,020 |
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 33 units, what would be the unit product cost?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started