PROBLEM 2-19 Multiple Predetermined Overhead Rates; Applying Overhead LO2-1, LO2-2, L02-4 High Desert Potteryworks makes a variety of pottery products that it sells to retailers. The com- pany 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 12,000 60,000 70,000 8,000 $497,000 $615,000 $1.50 $2.00