High Desert Potteryworks makes a variety of pottery products that it sells to retailers, such as Home Depot. The company uses a job- order costing system in which predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Moulding Department is based on machine-hours, and the rate in the Painting Department is based on direct labour cost. At the beginning of the year, the company's management made the following estimates: Direct labour-hours Machine-hours Direct materials cost Direct Labour cost Manufacturing overhead cost Department Moulding Painting 15,500 67,000 84,000 5524,000 $664,000 $ 155,000 5469.000 $840.000 $820,750 9,400 Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job: Direct labour-hours Machine-hours Materials placed into production Direct Labour cost Department Mouldingpainting 25 120 230 30 $500 3362 $320 $70 Supped Required: 1. Compute the predetermined overhead rate used during the year in the Moulding Department Compute the rate used in the Painting Department (Round "Cost per machine-hour answer to 2 decimal places.) Mouliding Department Painting Department Predetermined Overhead Rate per machine-hour of direct labour cost 2. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar) Tataloverheads 3-a. What would be the total cost recorded for Job 205? (Do not round Intermediate calculations. Enter your answers rounded to the nearest whole dollar.) Department Moulding Painting Total Direct materials Direct labour Manufacturing overhead applied Total cost $ OS 0$ 0 3-b. If the job contained 70 units, what would be the cost per unit? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Cost per unit 2 ped 4. At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year. Department Moulding Painting Direct labour-hours 11,400 63,400 Machine-hours 66,400 10,400 Direct materials cost $444,000 $694,000 Direct labour cost $122,000 5450,80 Manufacturing overhead cost 5676,400 $787,250 What was the amount of under-or overapplied overhead in each department at the end of the year? (Do not round Intermediate calculations.) Moulding Department Painting Department overhead overhead
