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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
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 CUEL Direct labor-hours Thing 8.100 Machine 178,000 1.100 Total find manufacturing overhead coat 34,100 380,000 401.000 Variable naturing overhead pre machine-hour 12.00 Variable naturing overhead per direct labor-hour 3.75 Required: 1. Compute the predetermined overhead rate for each department 2. The job cout sheet for Job 203, which was started and completed during the year, showed the following: Department Cutting Thing Direct labore 13 Machine #1 5 Direct materiais $720 300 Direct Taher coat 5115 $ 299 Using the predetermined overhead tates 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 the company used a plantwide predetermined overhead rate based on direct labor. hours, rather than using departmental rates? 5 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 decimatec
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