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 6,400 67,000 Machine-hours 57,000 3,500 Total fixed manufacturing overhead cost $ 380,000 $ 471,000 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: Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting Finishing 4 14 81 5 $ 730 $ 360 $ 84 $ 294 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? 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.) 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 4 14 Machine-hours 81 5 Direct materials $ 730 $ 360 Direct labor cost $ 84 $ 294 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to 203. 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 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 MH per DLH Required 2 > 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: Direct labor-hours Machine-hours Direct materials Direct labor cost Department Cutting Finishing 4 14 81 5 $ 730 $360 $ 84 $ 294 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to Je 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 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.) Total manufacturing cost Direct labor cost $ 84 $ 294 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cost assigned to 203. 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used a plantw 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 Requited 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? OYes No
