Problem 2 (15 points) White company has two departments, cutting and finishing. The company uses a job-order 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 cost. At the beginning of the year, the company made the following estimates: Cutting Finishing Direct labor-hours lin hours! 6.000 30.000 Machine-hours (in hours) 48,000 5,000 Manufacturing overhead cost (in CAD) 360,000 486,000 Direct labor cost lin CADI 50.000 270.000 Required: 1. Compute the predetermined overhead rate to be used in each department. 2. Assume that the overhead rates that you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following. Compute the total overhead cost applied to Job 203. Cutting Finishing Direct labor-hours (in hours) 6 20 Machine-hours (in hours) 4 Manufacturing overhead cost (in CAD) 500 310 Direct labor cost lin CADI 70 150 80