Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour. Variable manufacturing overhead per direct labor-hour Department Molding 36,000 87,000 Painting 52,100 40,000 $217,500 $ 484,530 $ 2.80 $ 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: Direct labor-hours Machine-hours Direct materials Direct labor cost Required: Department Molding 83 Painting 370 126 69 $ 938 $ 1,260 $ 700 $ 1,010 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 38 units, what would be the unit product cost? Complete this question by entering your answers in the tabs below. sa Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 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 Required 1 Required 2 > nces Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 38 Compute the total overhead cost applied to Job 205. Note: Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations and final answer to the nearest dollar amount. Total overhead cost < Required 1 Required 3A > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B 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.) Molding Department Painting Department Total Direct materials Direct labor Manufacturing overhead Total cost < Required 2 Required 3B > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B If the job contained 38 units, what would be the unit product cost? (Round "Predetermined overhead rate" to 2 decimal places. Round other intermediate calculations to the nearest dollar amount. Round your final answer to 2 decimal places.) Unit product cost per unit < Required 3A Required 28 >
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