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 Direct labor-hours Cutting Finishing 7,500 67,000 Machine-hours 60,400 1,400 Total fixed manufacturing overhead cost 5370,000 $454,600 Variable manufacturing overhead per machine-hour 5 3.00 Variable manufacturing overhead per direct labor hour 5 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 5 10 114 6 $710 5300 5110 5220 Using the predetermined overhead rates that you computed in requirement (1) compute the total manufacturing cost assigned to Job 203 1 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 topiven below. Required Required 2 Required) Compute the predetermined overhead rate for each department (Round your answers to 2 decimal places.) Cepartment Cutting Finishing Predetermined overhead rate per MH per DOH 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 5 10 84 6 5 710 $ 3B $ 110 5220 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 Using the predetermined overhead rates that you computed in requirement (1), compute the total manufacturing cout assigned to Job 203. (Round intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) Total inanufacturing cost 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 birect labor cost Department Cutting Finishing 5 1e 84 6 $ 710 $ 380 $110 $ 220 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 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? Yes No
