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:

	Department
	Molding			Painting
Direct labor-hours		34,500			52,600
Machine-hours		80,000			38,000
Fixed manufacturing overhead cost	$	152,000		$	473,400
Variable manufacturing overhead per machine-hour	$	3.00			-
Variable manufacturing overhead per direct labor-hour		-		$	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:

	Department
	Molding			Painting
Direct labor-hours		89			127
Machine-hours		310			73
Direct materials	$	948		$	1,160
Direct labor cost	$	740		$	970

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 31 units, what would be the unit product cost?

Predetermined Overhead Rate
Molding Department		per MH
Painting Department		per DLH

• Total overhead cost

  $

• Department
  	Moldingnot attempted	Painting	Total
  Direct materials			$
  Direct labor
  Manufacturing overhead
  Total cost	$	$	$

• Unit product cost

  per unit