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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

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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 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: 27 Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per machine hour Variable manufacturing overhead per direct labor-hour Department Cutting Finishing 3,900 55,700 $380,000 $460,000 $ $ 3.75 Required: 1. Compute 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: Departout Cutting Finishing 3 12 Direct labor-hours Machine-hours btrect materiais Direct labor cost $70 572 Using the predetermined overhead rates that you computed in requirement compute the total manufacturing cost assigned to Job 200 3 Would you expect substantially different amounts of overhead cost to be assigned to some jobs the company used a plantwide predetermined overheade based on direct labor hours, rather than using departmental rates! Help Seve&E 27 Using the predetermined overhead rates that you computed in requirement i 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. Neguired Compute the prettermined overhead rate for each department. (Round your answers to 2 decimal places.) ser per DH Red 2 >

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