PROBLEM #4 JCU Company has two departments, Cutting and Finishing. The company uses a job-order costing 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-hours. At the beginning of the year, the company made the following estimates: Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Department Cutting Finishing 5,000 20,000 50,000 5,000 $300,000$500,000 $2.00 - $4.00 Required: 1. Compute the predetermined overhead rate for each department (Cutting and Finishing) 2. The job cost sheet for Job 123, which was started and completed during the year, showed the following: Department Cutting Direct labor-hours Machine-hours Direct materials Direct labor cost 6 Finishing 20 80 4 $ 600 $ 110 $ 300 $390 Using the predetermined overhead rates computed in requirement (1), compute the total manufacturing cost assigned to Job 123.