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 34,500 55,400 Machine-hours 85,000 35,000 Direct materials cost $185,000 $195,000 Direct labor cost $274,000 $514,000 Fixed manufacturing overhead cost $195,500 $470,900 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 83 133 Machine-hours 360 69 Materials placed into production $942 $1,280 Direct labor cost $700 $1,010

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

3-a.

What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)

	Department
	Molding	Painting	Total
Direct materials
Direct labor
Manufacturing overhead
Total cost

3-b.

If the job contained 34 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)

Unit product 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
	Molding	Painting
Direct labor-hours	33,000	58,000
Machine-hours	84,600	23,600
Direct materials cost	$164,000	$423,000
Direct labor cost	$108,000	$436,000
Manufacturing overhead cost	$457,980	$745,500

What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).)

Molding Department
Painting Department