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 labour cost. At the beginning of the year, the company made the following estimates:

	cutting	finishing
Direct labour-hours	6200	34200
Machine-hours	48000	4200
Manufacturing overhead cost	$465600	555000
Direct labour cost	$62000	3000000

1) Compute the predetermined overhead rate to be used in each department.(Round your answers to 2 decimal places.)

pre determined overhead rate of cutting per MH?

pre determined overhead rate of finishing % of DLC?

2) Assume that the overhead rates that you computed in Requirement (1) are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following:

	cutting	finishing
direct labour hours	6	20
machine hours	80	4
materials requistioned	$510	$320
direct labour cost	$66	$162

Compute the total overhead cost applied to job 203. (Do not round intermediate calculations and round your answer to 2 decimal places.)

3) Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide overhead rate based on direct labour cost, rather than using departmental rates? yes or no