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White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates: Department Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor-hour Cutting Finishing 8,700 79,000 66,800 3,000 $ 400,000 $ 510,000 $ 4.00 - $ 3.75 2. Assume that the overhead rates you computed in (1) above are in effect. The job cost sheet for Job 203, which was started and completed during the year, showed the following: Department 6 Cutting Finishing 11 90 $ 770 $ 370 $ 37 $ 160 Direct labor-hours Machine-hours Materials requisitioned Direct labor cost 3 Compute the total manufacturing cost assigned to Job 203. (Round your intermediate and final answers to 2 decimal places.) Total manufacturing cost
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