Problem 2-24A Multiple Departments; Applying Overhead [LO2-1, LO2-2, LO2-3, LO2-7]

High Desert Potteryworks makes a variety of pottery products that it sells to retailers such as Home Depot. The company uses a job-order costing system in which 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's management made the following estimates:

	Department
	Molding	Painting
Direct labor-hours	39,000	52,800
Machine-hours	81,000	31,000
Direct materials cost	$190,000	$200,000
Direct labor cost	$271,000	$519,000
Fixed manufacturing overhead cost	$162,000	$480,480
Variable manufacturing overhead per machine-hour	$2.80	-
Variable manufacturing overhead per direct labor-hour	-	$4.80

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	76	132
Machine-hours	300	69
Materials placed into production	$936	$1,240
Direct labor cost	$690	$990

4.	At the end of the year, the records of High Desert Potteryworks revealed the following actual cost and operating data for all jobs worked on during the year:

	Department
	Molding	Painting
Direct labor-hours	28,000	53,000
Machine-hours	80,600	23,400
Direct materials cost	$165,700	$411,000
Direct labor cost	$108,000	$436,000
Manufacturing overhead cost	$397,280	$699,600

	What was the amount of underapplied or overapplied overhead in each department at the end of the year? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount. Select "None" for no effect (i.e., zero variance).)

Molding Depatment
Painting Department