Pad 2:47 AM Not Charging Introduction to Managerial Accounting,, 8th Edition Aa 4 a A PROBLEM 2-19 Multiple Predetermined Overhead Rates; Applying Overhead LO2-1, LO2-2, LO2-4 High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The company uses a job- order costing system predetermined overhead rates are used to apply page 93 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: in which departmental Department Molding Painting Direct labor-hours 12,000 60,000 Machine-hours 70,000 8,000 Fixed manufacturing overhead cost $497,000 $615,000 Variable manufacturing overhead per machine-hour $1.50 Variable manufacturing overhead per direct labor-hour $2.00 E B -R . 92 Not Charging 2:47 AM uction to Managerial Accounting, 8th Edition Aa a A Introduct Job 205 was started on August 1 and completed August 10. The company's cost records show the following information concerning the job: on Department Molding Painting Direct labor-hours 30 84 Machine-hours 110 20 Direct materials $770 $1,332 Direct labor cost $525 $1,470 Required: Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 1. Compute the total overhead cost applied to Job 205 What would be the total manufacturing cost recorded for Job 205? If the job contained 50 units, what would be the unit product cost? 2 3. PROBLEM 2-20 Plantwide versus Multiple Predetermined Overhead Rates: Service Industry 93