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White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates Department Cutting Finishing Direct labdr-hours 6,200 80,000 Machine-hours 55,700 2,280 Total fixed manufacturing overhead cost $ 380,000 $427, eee Variable manufacturing overhead per machine-hour $ 3.90 Variable manufacturing overhead per direct labor-hour $ 3.75 Required: 1. Compute the predetermined overhead rate for each department 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting Finishing 3 23 86 16 5.750 $.360 5 54 $ 234 ces Using the predetermined overhead rates that you computed in requirement (1) compute the total manufacturing cost assigned to Job 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Cutting Department Finishing Department Predetermined overhead rate per DLH Rogel Required 2 > per MH White Company has two departments, Cutting and Finishing The company uses a job order costing system and computes a predetermined overhead rate in each department The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor hours. At the beginning of the year, the company made the following estimates Direct labdr-hours Machine-hours Total Fixed manufacturing overhead cost Variable Manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Departeent Cutting Finishing 6,200 80, ees 55,700 2,200 $ 380,000 $427,000 $ 3.00 $ 3.75 - 1 3 Required: 1. Compute the predetermined overhead rate for each department 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following Department Cutting Finishing Direct labor-hours Machine-hours 86 Direct materials 5.750 5 360 Direct labor cost $ 54 $ 234 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? 13 6 Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Joh 203. (Round Intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total manufacturing cost
