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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 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's management made the following estimates: Department Molding Painting Direct labor-hours 37,500 57,700 Machine-hours 89,000 31,000 Direct materials cost $192,000 $202,000 $271,000 $520,000 Direct labor cost Fixed manufacturing overhead cost $258,100 $553,920 Variable manufacturing overhead per machine-hour $2.40 Variable manufacturing overhead per direct labor- $4.40 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: Department Molding Painting Direct labor-hours 80 135 Machine-hours 360 68 $944 Materials placed into production $1,300 $730 Direct labor cost $990 Required: 1. Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.) Predetermined overhead rate Molding Department per MH Painting Department per DLH 2. Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.) Total overhead cost
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