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
	Molding			Painting
Direct labour-hours		16,250			68,500
Machine-hours		87,000			9,700
Direct materials cost	$	527,000		$	667,000
Direct labour cost	$	162,500		$	479,500
Manufacturing overhead cost	$	896,100		$	815,150

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		35			150
Machine-hours		160			25
Materials placed into production	$	460		$	322
Direct labour cost	$	280		$	670

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.)

	predetermined overhead rate
Molding department	_______ per machine hour
Painting department	_______ % of direct labour

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

Total overhead cost=

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

3-b. 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.)

Cost per unit=

4. 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		11,700			63,700
Machine-hours		66,700			10,700
Direct materials cost	$	447,000		$	697,000
Direct labour cost	$	125,000		$	453,000
Manufacturing overhead cost	$	699,710		$	753,500

What was the amount of under- or overapplied overhead in each department at the end of the year? (Do not round intermediate calculations.)

molding department:

Painting department: