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Please answer all parts! Thank you! Problem 2-19 Multiple Predetermined Overhead Rates; Applying Overhead (LO2-1, LO2-2, LO2-4) High Desert Potteryworks makes a variety of pottery
Please answer all parts! Thank you!
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 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: Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Molding Painting 33,000 54,400 85,000 33,000 $178,500 $484,160 $ 3.00 - $ 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: Direct labor-hours Machine-hours Direct materials Direct labor cost Department MoldingPainting 79129 37073 $ 940 $1,120 $ 720 $1,010 Required: 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 25 units, what would be the unit product costStep by Step Solution
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