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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
Direct labor-hours 30,000 55,900
Machine-hours 84,000 35,000
Fixed manufacturing overhead cost $ 218,400 $ 531,050
Variable manufacturing overhead per machine-hour $ 2.80 -
Variable manufacturing overhead per direct labor-hour - $ 4.80

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 79 130
Machine-hours 320 67
Direct materials $ 942 $ 1,180
Direct labor cost $ 750 $ 960

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 22 units, what would be the unit product cost?

Complete this question by entering your answers in the tabs below.

  • Req 1
  • Req 2
  • Req 3A
  • Req 3B

Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.)

Predetermined Overhead Rate
Molding Department per MH
Painting Department per DLH
  • Complete this question by entering your answers in the tabs below.

  • Req 1
  • Req 2
  • Req 3A
  • Req 3B
  • Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.)

    Total overhead cost

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