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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

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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: Department Moulding Painting Direct labour-hours 14,250 64,500 Machine-hours 79,000 8,900 Direct materials cost $519,000 $659,000 Direct labour cost $142,500 $451,500 Manufacturing overhead cost $750,500 $767,550 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 Moulding Painting Direct labour-hours 35 170 Machine-hours 180 25 Materials placed into production $430 $292 Direct labour cost $250 $640 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.) Department De ac (-2- cu Painting Department _ % of direct labour cost 2. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations.) _:| 3-a. What would be the total cost recorded for Job 205? (Do not round intermediate calculations.) Direct materials Direct labour Manufacturing overhead applied Total cost 3-b. If the job contained 50 units, what would be the cost per unit? (Do not round intermediate calculations and round your nal answer to 2 decimal places.) 1 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 10,900 62,900 Machine-hours 65,900 9,900 Direct materials cost $439,000 $689,000 Direct labour cost $117,000 $445,000 Manufacturing overhead cost $637,950 $757,875 What was the amount of under or overapplied overhead in each department at the end of the year? (Do not round intermediate calculations.)

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