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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 Departmentbasesits rate on direct labor-hours Atthe beginning of the year, the company made the following estimates: Department Finishing Direct labor-hours 7,400 68.000 Machine-hours 3,200 380.000 489.000 Total fixed manufacturing overhead cost Variable manufacturing overhead per machine-hour 3.00 Variable manufacturing overhead per directlabor-hour 3.75 Required: 1. Compute the predetermined overhead rate to be used in each department (Round your answers to 2 decimal places.) Department Finishing Cutting 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 Cutting Finishing Direct labor-hours 19 Machine-hours Materials requisitioned 800 390 43 160 Direct labor cost Compute the total manufacturing cost assigned to Job 203. (Round your intermediate and final answers to 2 decimal places.) Dalmanufacturingoos
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