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Please give a detailed explanation for solving problem per unit would avoit 5. If Moody hired you as a consultant to critique its pricing methodology,
Please give a detailed explanation for solving problem
per unit would avoit 5. If Moody hired you as a consultant to critique its pricing methodology, what would you say? EXERCISE 2-13 Departmental Predetermined Overhead Rates 102-1, 102-2.402-4 White Company has two departments. Cutting and Finishing. The company uses a job-order costing sys- tem and computes a predetermined overhead rate in cach department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases unite on direct labor-hours. At the beginning of the year, the company made me wangent Department Cutting Finishing 30,000 5,000 Direct labor hours. Machine-hours. Total fixed manufacturing overhead cost Variable manufacturing overed percine-hour Variable manufacturing overheid perechinor hour 6.000 48.000 $264,000 $200 $366,000 $4.00 Required: 1. Compute the predetermined overheado s departe Chapter 2 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Finishing 20 80 Direct labor-hours Machine-hours Direct materials Direct labor cost $500 $108 $310 $360 above, compute the total Using the predetermined odhad rates that you computed manufacturing cost assigned to 203 Would you expect substantially different mo v ed company used a plantwide pred h od ovrhead t o departmental rates? Explain. No comp ons are secessary to be signed to some jobs if the treat hours, rather than using VerStep by Step Solution
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