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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
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 55,800 Machine-hours 84,600 32,060 Fixed manufacturing overhead cost $ 218,480 $ 546,840 Variable manufacturing overhead per machine-hour $ 2.20 Variable manufacturing overhead per direct labor-hour $ 4.26 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 Molding Painting Direct labor-hours 125 Machine-hours 300 72 Direct materials $ 936 $ 1, 140 Direct labor cost $ 706 $ 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 25 units, what would be the unit product cost? 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 per MH Painting Department per DLH Required 1 Required 2 Required 3A Required 3B 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 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 Painting Total Department Department Direct materials Direct labor Manufacturing overhead Total cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3A Required 3B If the job contained 25 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
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