White Company has two departments, Cutting and Finishing. The company uses job$-$order costing 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: White Company has two departments, Cutting and Finishing. The company uses job$-$order costing 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:

Required:

Compute the predetermined overhead rate for each department.

The job cost sheet for Job $203,$ which was started and completed during the year, showed the following:

Using the predetermined overhead rates you computed in requirement $(1),$ compute the total manufacturing cost assigned to Job

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?Department

Cutting Finishing

Direct labor$-$hours $7,40078,000$

Machine$-$hours $60,1002,100$

Total fixed manufacturing overhead cost $ $380,000$ $ $537,000$

Variable manufacturing overhead per machine$-$hour $ $3\mathrm{.}000$

Variable manufacturing overhead per direct labor$-$hour $0$ $$4\mathrm{.}75$Department

Cutting Finishing

Direct labor$-$hours $415$

Machine$-$hours $823$

Direct materials $ $750$ $ $360$

Direct labor cost $ $84$ $ $315$

Using the predetermined overhead rates you computed in requirement $(1),$ compute the total manufacturing cost assigned to Job $203.$