Question Job costing (12 marks) High Desert Potteryworks makes a van y uses a job-order costing system in which such as Home Depot. The company uses a job-order costings Oeryworks makes a variety of pottery products that it sells to retailers Pedetermined overhead rates are used to apply manufacturing overhead cost to jobs. predetermined overhead rate in the Molding Department is based on machine- s, 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: The predetermined overhead ra hours, and the rate in the Painting De Direct labour-hours ....... Machine-hours..... Direct materials cost ....... Direct labour cost .... Manufacturing overhead cost... Department Molding Painting 12,000 60,000 70,000 8,000 $510,000 $650,000 $130,000 $420,000 $602,000 $735,000 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 30 85 Direct labour-hours .... Machine-hours.. Materials placed into production .... Direct labour cost ...... 20 110 $470 $290 $332 $680 Required: (a) Compute the predetermined overhead rate used during the year in the Molding Department. Compute the rate used in the Painting Department. (3 Marks) (b) Compute the total overhead cost applied to Job 205. (3 marks) (c) What would be the total cost recorded for Job 205? If the job contained 50 units. what would be the unit product cost? (3 marks) (d) 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: Direct labour-hours. Machine-hours Direct materials cost Direct labour cost Manufacturing overhead cost Department Molding Painting 10,000 62,000 65,000 9,000 $430,000 $680,000 $108,000 $436,000 $570,000 $750,000 What was the amount of under or overapplied overhead in each department at the end of the year