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 labour cost. At the beginning of the year, the company made the following estimates: Direct labour-hours Machine-hours Manufacturing overhead cost Direct labour cost Department Cutting Finishing 5,000 21,800 45,000 3,000 $382,500 $498,000 $ 75,000 $323,400 Required: 1. Compute the predetermined overhead rate to be used in each department. (Round "Cutting Department" answer to 2 decimal places and "Finishing Department" answer to nearest whole percent.) Predetermined overhead rate Department Cutting Finishing per MH % of DLC 2. Assume that the overhead rates that you computed in Requirement (1) are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following Department chUrl=https%253A%252F%252Fim - Chapter 36 Saved 2. Assume that the overhead rates that you computed in Requirement (1) are in effect. The job cost sheet for job 203, which was started and completed during the year, showed the following Department Cutting Finishing Direct labour-hours 20 Machine-hours 80 4 Materials requisitioned $ 500 $ 380 Direct labour cost $ 85 $ 320 Compute the total overhead cost applied to job 203. (Do not round intermediate calculations and round your answer to 2 decimal places.) Total overhead cost applied 3. Would you expect substantially different amounts of overhead cost to be assigned to some jobs if the company used Lolantwide overhead rate based on direct labour cost, rather than using departmental rates? Yes ONO