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 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 |
| 38,000 |
|
| 50,300 |
| |
Machine-hours |
| 83,000 |
|
| 31,000 |
| |
Fixed manufacturing overhead cost | $ | 182,600 |
| $ | 442,640 |
| |
Variable manufacturing overhead per machine-hour | $ | 2.60 |
|
| - |
| |
Variable manufacturing overhead per direct labor-hour |
| - |
| $ | 4.60 |
| |
|
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 |
| 74 |
|
| 133 |
| |
Machine-hours |
| 360 |
|
| 73 |
| |
Direct materials | $ | 944 |
| $ | 1,140 |
| |
Direct labor cost | $ | 680 |
| $ | 1,010 |
| |
|
Please fill a whole number in each of the following blanks. No "$" sign, no comma in the number please.
1. The estimated total manufacturing overhead cost in the Molding Department is $ .
2. The estimated total manufacturing overhead cost in the Painting Department is $ .
Please fill a number with 2 decimal places in each of the following blanks. No "$" sign, no comma in the number please.
3. The predetermined overhead rate used in the Molding Department is $ .
4. The predetermined overhead rate used in the Painting Department is $ .
Please fill a whole number in each of the following blanks. No "$" sign, no comma in the number please.
5. The total overhead cost applied to Job 205 is $ .
6. The total manufacturing cost recorded for Job 205 is $ .
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