PUMUS Font Alignment Number Styles o co Question 2 (10 Marks) Montana Technology, Inc. has a job-order costing system. The company uses pre- determined overhead rates in applying manufacturing overhead cost to individual jobs The pre-determined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year. Department Machine-hours Direct labour-hours Direct materials cost Direct labour cost Manufacturing overhead cost 70,000 30,000 $195,000 $260,000 $420,000 19,000 60,000 $282,000 $520,000 $705,000 Job 243 entered into production on April 1 and was completed on May 12. The company's cost records show the following information about the job: Department B Machine-hours 250 Page Q1 Q2 Q3 04 05 06 07 08 09 60 e here to search DOLL = -11AA U O-A Fonts 2 E General $ - % * 8-68 Conditional Format as Cell Formatting Table Styles Styles Alignment 5 Number Machine-hours Direct labour-hours Direct materials cost Direct labour cost 250 70 $840 $610 60 120 $1,100 $880 At the end of the year, the records of Montana showed the following actual cost and operating data for all jobs worked on during the year. Machine-hours Direct labour-hours Direct materials cost Manufacturing overhead cost Department A 61,000 20.000 28,000 66,000 $156,000 $284,000 $385.000 $705,000 Required: Ja. Compute the pre-determined overhead rates for Department A and Department B (4 marks) b. Compute the total overhead cost applied to Job 243 (2 marks) c. Computer the amount of under-applied or over-applied overhead in each department at the end of the current year (4 marks) Page Q1 Q2 Q3 04 05 06 07 08 09 here to search