III Mixed Wood Limited has three departments - Wood Turning, Moulding and Collection. The company uses a job-order costing system. The Wood Turning bases its overhead on direct wood turning machine hours; the Moulding Department bases its overhead rate on direct mould machine-hours; and the Collection Department bases its rate on direct-labour hours. At the beginning of the year, the company made the following estimates: Department Wood Turning Moulding Collection Direct labour-hours 6,800 4,500 120,000 Direct Wood Turning Machine- 94,000 20 150 hours III 1,000 120,000 300 $2,550,000 $1,205,000 $4,330,000 $4.25 $4.25 $4.25 Direct Mould Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per wood turning machine-hour Variable manufacturing overhead per mould machine-hour Variable manufacturing overhead per direct labour-hour $7.75 $7.75 $7.75 $1.50 $1.50 $1.50 Following is the job cost sheet for Job.907 which was started and completed during III Following is the job cost sheet for Job 907, which was started and completed during the year: Department Moulding Collection Wood Turning 12,125 2 4 2 11,010 6 Direct wood turning machine-hours Direct mould machine-hours Direct labour hours Materials requisitioned 89 65 19,100 $21,002 $11,445 $1,090 Direct labour costs $2,650 $4,874 $18,900 III Required: 1) Compute the predetermined overhead rate based on a department overhead rate. (Hint: Ensure work out overhead rate for both departments). 2) Compute the total manufacturing cost assigned to Job 907 based on department overhead rate calculated in Requirement 1. 7 i B 1 ili III 32 U X2 x