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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 Holding Painting Direct labor-hours 36,500 59.000 Machine-hours 80,000 35,000 Fixed manufacturing overhead cost 5224,000 $536,900 Variable manufacturing overhead per machine hour $ 2.40 Variable manufacturing overhead per direct labor hour $ Job 205 was started on August 1 and completed on August 10. The company's cost records show the following information concerning the job Direct labor-hours Machine hours Direct materials Direct labor cost Department Molding ainting 81 131 330 67 54251,100 $7005960 Required: 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. What would be the total manufacturing cost recorded for Job 2057 3ible job contained 25 units what would be the unit product cost
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