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	59,000
Machine-hours	85,000	35,000
Fixed manufacturing overhead cost	$ 204,000	$ 536,900
Variable manufacturing overhead per machine-hour	$ 3.00	-
Variable manufacturing overhead per direct labor-hour	-	$ 5.00

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	81	126
Machine-hours	340	67
Direct materials	$ 944	$ 1,180
Direct labor cost	$ 730	$ 970

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 28 units, what would be the unit product cost?

Compute the following:

Question 1

Compute the Predetermined Overhead Rates used in the Molding Department and the Painting Department.

Predetermined Overhead Rate
Molding Department		per MH
Painting Department		per DLH

Question 2

Compute the total overhead cost applied to Job 205.

Total overhead cost

Question 3A

What would be the total manufacturing cost recorded for Job 205?

	Molding Departmentnot attempted	Painting Department	Total
Direct materials			$0
Direct labor			0
Manufacturing overhead			0
Total cost	$0	$0	$0

Question 3B

If the job contained 28 units, what would be the unit product cost?

Unit product cost

per unit