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 overhead
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 overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined rate in 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
Molding Painting
Direct labor hours 32,000 53,300
Machine-hours 85,000 35,000
Fixed Manufacturing
Overhead Cost 187,000 490,360
Variable Manufacturing overhead
per machine 2.80
Variable Manufacturing overhead
per direct labor hour 4.80
Job 205
Direct Labor hours 83 129
Machine Hours 360 67
Direct Materials 930 1,260
Direct Labor Cost 700 1000
Compute the predetermined overhead rate used in the Molding department and the Painting Dept
Compute the total overhead manufacturing cost recorded for Job 205
What would be the total manufacturing cost recorded for Job 205?
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