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 35,500 51,700 Machine-hours 80,000 38,000 Fixed manufacturing overhead cost $192,000 $511, 830 Variable manufacturing overhead per machine-hour 2.40 Variable manufacturing overhead per direct labor-hour 4.40 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: 128 Direct labor-hours Machine-hours Direct materials Direct labor cost Department Molding Painting 89 350 72 $938 $1,280 $ 680 $1,080 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 32 units, what would be the unit product cost? 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 32 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req Req 3B Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department. (Round your answers to 2 decimal places.) Prodetermined Overhead Rato Molding Department Painting Department per MH per DLH Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Req 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 What would be the total manufacturing cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answers to the nearest dollar amount.) Department Molding Painting Total Direct materials Direct labor Manufacturing overhead Total cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume that the current selling price of a Type A storage cabinet is $398.00 and the marketing manager is contemplating a $44 discount to stimulate volume. Is this discount advisable? OYes ONO
