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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

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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 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: Daeartment Cutting Finishing Direct laborhours 8.300 "7,000 Machine-hours 63,200 3,400 Total fixed manufacturing overhead cost $ 390, 000 $ 560, 000 Variable manufacturing overhead per machinehour S 4 . 00 Variable manufacturing overhead per direct labor-hour 5 4 . TS Required: 1. Compute the predetermined overhead rate for each department. 2. Thejob cost sheet for Job 203. which was started and completed during the year, showed the following: Department Cutting Finishing Direct laborhours 4 2D Machine-hours 36 6 Direct. materials $ Hi} $ 390 Direct labor cost $ 96 $ 430 Using the predetermined overhead rates that you computed in requirement {1], compute the total manufacturing cost assigned to Job 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates

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