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
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 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Molding Painting 34,000 50,400 89,000 32,000 Variable manufacturing overhead per machine-hour $178,000 $ $428,400 3.00 Variable manufacturing overhead per direct labor-hour - $ 5.00 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 MoldingPainting Direct labor-hours Machine-hours Direct materials Direct labor cost 88 340 130 74 $ 932 $1,200 $ 700 $1,010 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 30 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 Painting Department per MH per DLH < Req 1 Req 2 >
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