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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

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 companys management made the following estimates:

Department
Moulding Painting
Direct labour-hours 15,500 67,000
Machine-hours 84,000 9,400
Direct materials cost $ 524,000 $ 664,000
Direct labour cost $ 155,000 $ 469,000
Manufacturing overhead cost $ 840,000 $ 820,750

Job 205 was started on August 1 and completed on August 10. The companys cost records show the following information concerning the job:

Department
Moulding Painting
Direct labour-hours 25 120
Machine-hours 130 30
Materials placed into production $ 500 $ 362
Direct labour cost $ 320 $ 710

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.)

1b. Compute the total overhead cost applied to Job 205. (Do not round intermediate calculations. Enter your answer rounded to the nearest whole dollar.)

1c. What would be the total cost recorded for Job 205? (Do not round intermediate calculations. Enter your answers rounded to the nearest whole dollar.)

1d. If the job contained 70 units, what would be the cost per unit? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

1e. 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 11,400 63,400
Machine-hours 66,400 10,400
Direct materials cost $ 444,000 $ 694,000
Direct labour cost $ 122,000 $ 450,000
Manufacturing overhead cost $ 676,400 $ 787,250

1f. 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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