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High Desert Pottery works makes a variety of pottery products that it sells to retailers. The company uses a job-order osting system in which departmental
High Desert Pottery works makes a variety of pottery products that it sells to retailers. The company uses a job-order osting system in which departmental predetermined overhead rates are used to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Molding Department is based on machine-hours, and the rate in the Painting Department is based on direct labor- hours. At the beginning of the year, the company provided the following estimates: Department Molding Painting 12,eee 60, eee 70,000 8, eee 497,000 $ 615,000 1.50 Direct labor-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead per machine- hour Variable manufacturing overhead per direct labor-hour $ $ 2.00 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 Direct labor-hours Machine-hours Direct materials Direct labor cost 110 $ 770 $ 525 $ 1,332 $1,479 Required: 1. Compute the predetermined overhead rates used in the Molding Department and the Painting Department. 2. Compute the total overhead cost applied to Job 205. 3-a. What would be the total manufacturing cost recorded for Job 205? 3-b. If the job contained 50 units, what would be the unit product cost
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