The following information is available for 20X8 for Latta Company:

Ending Work in Process: $40,000 (including applied overhead of $19,500)

Ending Finished Goods: $120,000 (including applied overhead of $58,500)

Cost of Goods Sold for the year: $640,000 (including applied overhead of $312,000 from this year)

For example, of the $40,000 ending balance in work in process, $19,500 was overhead that had been applied during the year.

At year end, the company had an over-applied overhead balance of $200. This amount IS considered significant.

Delph company uses a job-order costing system and has two manufacturing departments - Molding and Fabrication. the company provided the following estimates at the beginning of the year :

	Molding	Fabrication	Total
Machine-hours	20,000	30,000	50,000
Fixed manufacturing overhead costs	$700,000	$210,000	$910,000
Variable manufacturing overhead per machine hour	$3.00	$3.00

During the year the company had no beginning or ending inventories and it started, completed, and sold only two jobs-Job D-70 and Job C-200. It provided the following information related to those two jobs.

Job D-70	Molding	Fabrication	Total
Direct materials cost	$375,000	$325,000	$700,000
Direct labor cost	$200,000	$160,000	$360,000
Machine-hours	14,000	6,000	20,000

Job D-200	Molding	Fabrication	Total
Direct materials cost	$300,000	$250,000	$550,000
Direct labor cost	$175,000	$225,000	$400,000
Machine-hours	6,000	24,000	30,000

Delph had no overapplied or underapplied manufacturing overhead during the year.

Required:

1. Assume Delph uses a departmental overhead rate based on machine - hours. Compute the predetermined overhead rate for Molding department.

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