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 Cutting Finishing 6,200 85,000 68,900 1,100 $390,000 $477,000 Direct labor-hours Machine-hours Total fixed manufacturing " overhead cost Variable manufacturing overhead per machine-hour Variable manufacturing overhead per direct labor- hour 3.00 - $ 3.75 Required: 1. Compute the predetermined overhead rate for each department. 2. The job cost sheet for Job 203, which was started and completed during the year, showed the following: 15 Department cutting Finishing Direct 3 labor-hours Machine- 813 hours Direct $720 $350 materia Direct labor S 63 5315 COSE Using the predetermined overhead rates that you computea in requirement (1), compute the total manufacturing cost signed to Job 203 B Would you expect substantia y derent amounts of overhead cost to be assigned to some jobs the company used p ide predetermined overhead rate based on direct aborHours rather than using departmentaletes