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:

		Department
		Cutting	Finishing
Direct labour-hours		5,300	43,800
Machine-hours		43,900	5,800
Manufacturing overhead cost		342,420	361,000
Direct labour cost		53,800	180,500

Required:
1.	Compute the predetermined overhead rate to be used in the Cutting Department. (Round your answer to 2 decimal places.)
	Compute the predetermined overhead rate to be used in the Finishing Department. (Round your answer to the nearest per cent.)

2.	Assume that the overhead rates that you computed in Question 1 above 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		4	40
	Machine-hours		70	7
	Materials requisitioned		70	280
	Direct labour cost		70	160

	Compute the total overhead cost applied to Job 203. (Round your answer to the nearest pound.)

3.	Would different amounts of overhead cost be assigned to some jobs if the company used a plantwide overhead rate based on direct labour cost, rather than using departmental rates? No computations are necessary.
	multiple choice Yes No