Q1& Q2

Stoke Potteryworks, makes a variety of pottery products that it sells to retailers. 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 moulding department is based on machine hours, and the rate in the painting department is based on direct labour cost. At the beginning of the year, the company's management made the following estimates: + e Direct labour hours Machine hours Direct materials cost Direct labour cost Manufacturing overhead coste Moulding 12,000 70,000 510,000+ 130,000 602,000 Department Painting 60.000 8,000 650,000 420,000 735,000 Job 205 was started on 1 August and completed on 10 August. The company's cost records show the following information concerning the job. Direct labour hours Machine hours Materials placed into production Direct labour cost Moulding 30- 110 470- Department Painting 85 20 332 290 680 Required: 1. Compute the predetermined overhead rate used during the year in the Moulding Department and in the Painting Department. (6 Marks) 2. Compute the total overhead cost applied to job 205. (4 Marks) 3. What would be the total cost recorded for job 2052 If the job contained 50 units, what would be the cost per unit? (15 Marks) 4. At the end of the year, the records of Stoke Potterxworks revealed the following actual cost and operating data for all jobs worked on during the year: el Continued next page..... 7 e Direct labour hours Machine hours Direct materials coste Direct labour coste Manufacturing overhead coste Moulding 10,000 65,000 430,000 108,000 570,000 Department Paintinge 62,000 9,000 680,000 436,000 750,000 What was the amount of under-or overapplied overhead in each department at the end of the year? RM