Question
nt ences High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in
nt ences 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 32,500 58,300 Direct labor-hours Machine-hours. Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour 82,000 38,000 $196,800 $548,020 $ 2.40 4.40 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 MoldingPainting Direct labor-hours Machine-hours Direct materials Direct labor cost Required: 73 300 126 72 $944 $1,120 $ 740 $1,010 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 26 units, what would be the unit product cost?
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