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 Required 1 Compute the predetermined overhead rate used during the year in the Molding Department Compute the rate used in the Painting Department (Round your answers to 2 decimal places ) 2 Compute the total overhead cost applied to Job 205 (Round Predetermined overhead rate to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount ) 3 a What would be the total cost recorded for Job 205 (Round Predetermined overhead rate to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount ) 3 b If the job contained 22 units, what would be the unit product cost (Round Predetermined overhead rate and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount ) 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) )

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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

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

Required:

1.	Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (Round your answers to 2 decimal places.)

2.	Compute the total overhead cost applied to Job 205. (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)

3-a.	What would be the total cost recorded for Job 205? (Round "Predetermined overhead rate" to 2 decimal places, other intermediate calculations and final answers to the nearest dollar amount.)

3-b.	If the job contained 22 units, what would be the unit product cost? (Round "Predetermined overhead rate" and final answer to 2 decimal places and other intermediate calculations to the nearest dollar amount.)

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).)