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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: Department Cutting Finishing Direct labor-hours 6,100 66,000 Machine-hours 63,700 1,300 Total fixed manufacturing overhead cost $ 370,000 $ 421,000 Variable manufacturing overhead per machine-hour $ 4.00 Variable manufacturing overhead per direct labor-hour $ 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: Department Cutting Finishing Direct labor-hours 5 12 Machine-hours 85 3 Direct materials $ 720 $ 380 Direct labor cost $ 105 $ 252 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plant predetermined overhead rate based on direct labor-hours, rather than using departmental rates? newers in the tabs given below. Sowed ework - Chapter 2 Check my wor 1 Direct labor-hours Machine-hours Direct materials Direct labor cost 5 85 $ 720 $ 105 12 3 $ 380 $ 252 203. 5 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 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? BOOK Print Complete the question by entering your answers in the tabs given below. ferences Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Cutting Department Finishing Department Predetermined overhead rate per DLH Required 2 > por MH Direct materials 5 720 5380 Direct Labor cost $105 5.252 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? or Complete the question by entering your answers in the tabs given below. Required 1 Required? Required Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round your intermediate calculations and final answer to 2 decimal places.) Total manufacturing cout

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