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 in thing Direct labor-hours 7,000 81,000 Machine-hours Total fixed manufacturing overhead cost 61,700 1.900 $ 370,000 $.477.000 Variable manufacturing overhead per machine-hour $ 3.00 Variable manufacturing overhead per direct labor-hour $ 2.75 Book Required: 1. Comppte 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 86 5 $750 $370 $115 $230 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. 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 lobor-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 Finishing Predetermined overhead rate per DLH Required Required 2 > Cutting por MH Down Using the predetermined overhead rates that you computed in requirement (7.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 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
