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PROBLEM SOLVING Fukuoka Ceramics Company makes custom ceramic products that it sells to souvenir shops per prefecture. The company uses a job-order cost system and

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PROBLEM SOLVING Fukuoka Ceramics Company makes custom ceramic products that it sells to souvenir shops per prefecture. The company uses a job-order cost system and predetermination of manufacturing overhead to apply costs to jobs. The POHR in the Molding Department is based on machine hours, and the rate in the Painting Department is based on direct labor cost. At the beginning of the year, the company's management made the following estimates: Direct labor hours Machine hours Direct materials cost Direct labor cost Manufacturing overhead cost Molding 12,000 76,000 510,000 130,000 620,000 Painting 60,000 8,000 650,000 417,000 722,000 The following job pertains to Job 501, which was started on May 1 and complete on May 10. Job 501 Direct labor hours Machine hours Materials placed into production Direct labor cost Molding 30 146 470 290 Painting 85 20 332 730 At the end of the year the records of Fukuoka Ceramics Company revealed the following actual cost and operating data for all jobs worked on during the year: Direct labor hours Machine hours Direct materials cost Direct labor cost Manufacturing overhead cost Molding 10,000 65,000 430,000 108,000 531,000 Painting 62,000 9,000 680,000 436,000 755,000 Required: 1. Predetermined overhead rate in the Molding department. 2. Predetermined overhead rate in the Painting Department. 3. Total overhead applied to Job 501. 4. Total manufacturing cost of Job 501. 5. Unit manufacturing cost of Job 501 if the job contained 75 units. 6. Over (under) application of overhead for the year - Molding Department. For consistency, a positive answer is OVER, a negative answer is Under. (examples: 1000, -1000) 7. Over (under) application of overhead for the year - Painting Department. For consistency, a positive answer is OVER, a negative answer is Under. (examples: 1000, -1000) 8. Total over (under) application of overhead for the year. For consistency, a positive answer is OVER, a negative answer is Under. (examples: 1000, -1000) 9. Total manufacturing cost (before adjustment) to be reported in the income statement for the year

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