White Company has two departments, Cutting and Finishing. The company uses a job order costing system and computes a predetermined overhead rate in cach 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 8,500 84,000 Machine-hours 56,200 1,200 Total fixed manufacturing overhead cost $380,000 $401.000 Variable manufacturing overhead per machine-hour 3.00 Variable manufacturing over head 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 Machine-hours Direct materials $770 Direct labor cost $105 5 18 3 $370 $378 sing 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? Complete the question by entering your answers in the tabs given below. Machine-hours Direct materials Direct labor cost 89 $770 $105 5370 $378 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Jc 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? Complete the question by entering your answers in the tabs given below. Required 1 Required 2 Required 3 Compute the predetermined overhead rate for each department. (Round your answers to 2 decimal places.) Department Cutting Finishing Predetermined overhead rate per MH per DLH $770 Direct materials Direct labor cost $370 $378 $105 203 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Jol 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? Complete the question by entering your answers in the tabs given below. Required: Required 2 Required Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Job 203. (Round Intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Tots manufacturing can Required 1 Required 3 > Direct labor-hours Machine-hours Direct materials Direct labor cost Cutting Finishing 5 18 89 $770 $370 5105 $378 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantwi predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Complete the question by entering your answers in the tabs given below. Required Required 2 Required 3 Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used plantwide predetermined overhead rate based on direct labor-hours, rather than using departmental rates? Yes ONO
